Shocking News – America’s Seniors are Among the Developed World’s Poorest
The United States is failing its seniors. A recent story by CNBC shares some shocking news — according to the Organization for Economic Co-operation and Development, about 23 percent of Americans over age 65 live in poverty. That’s one of the highest shares among developed nations! The U.S. falls behind 30 other countries in the 38-member bloc, which collectively has an average poverty rate of 13.1 percent. According to the article, only Mexico ranks worse than the U.S. in terms of old age “poverty depth.”
One of the primary reasons the U.S. ranks so low is because the base Social Security benefit is lower than the minimum government benefit in most OECD member nations. Experts say that while raising Social Security payouts at the low end of the income spectrum would help combat old-age poverty, it would also cost more money at a time when the program’s finances are uncertain. Social Security is facing a looming deficit, due in part to longer lifespans and Baby Boomers entering retirement age, and in about ten years will no longer be able to pay full benefits.
Enact the Social Security Expansion Act
The Seniors Trust believes the Social Security Expansion Act is the best solution to not only strengthen benefits proven to reduce senior poverty and improve retirement security but to extend the solvency of this crucial program as well.
This bill will help low-income workers stay out of poverty by updating and increasing the Special Minimum Benefit and indexing the benefit level so that it is equal to 125 percent of the poverty line or over $18,000 for a single worker who had worked their full career.
Additionally, the Social Security Expansion Act would increase monthly Social Security benefits by $200 per month, putting more money in the pockets of older Americans.
This bill would also create a better cost-of-living adjustment (COLA) formula by adopting the Consumer Price Index for the Elderly (CPI-E). This better reflects senior spending, as older Americans tend to spend a disproportionate amount of their income on health care and prescription drugs.
If this is something you can support, please sign our petition to Congress and join The Seniors Trust as we strive to improve the lives of senior citizens.
