The Average Retiree Spends More Than They Receive From Social Security
The struggle is real. Money Talks News recently reported that “U.S. households led by someone who is 65 or older spend $60,087 a year — $5,007 a month — on average,” according to Bureau of Labor Statistics data. But the average Social Security retirement benefit check is about $1,900 per month, according to the Social Security Administration’s (SSA) Monthly Statistical Snapshot. This explains why the millions of retirees who rely on Social Security as their sole source of retirement income are facing financial hardship.
The article pointed out that more than one-third (36 percent) of older household spending is for housing. Another sizable chunk, about 13 percent of the total budget, goes towards healthcare. Transportation (15 percent) and food (12.8 percent) are other big expenses for retirees.
Call for a New COLA
When you see where most of seniors’ money is going, it’s clear to see why senior advocates, like The Seniors Trust, are calling for Social Security to adopt a different cost-of-living adjustment (COLA) calculator. Currently, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is used to measure inflation.
The CPI-W measures inflation based on the spending habits of younger, working-age adults rather than the Consumer Price Index for the Elderly (CPI-E) which considers the unique spending habits of those 62 and older. The CPI-W tends to underestimate the importance of housing and medical care, which are the biggest expenses facing older Americans.
The Clear Solution
The Social Security Expansion Act calls for adopting the CPI-E. Not only would this provide Social Security recipients with a fairer COLA, but this landmark piece of legislation also provides across-the-board benefits boost of about $2,400 per year and long-term Social Security solvency.
Please sign our petition to Congress and join us as we strive to improve the lives of senior citizens through passage of the Social Security Expansion Act.
