Earlier this month the Social Security Administration announced its largest cost of living adjustment in nearly 40 years, which now sits at 8.7%.
Recipients will get $150 more per month into the pockets of those beginning in January to help combat surging living costs due to inflation. But according to reports, it’s not enough.
At the top of this year, the average monthly Social Security retirement benefit will increase by roughly $146, from approximately $1,681 to $1,827, or between $20,000-$22,000/year. That’s well below what most American adults say they need to live comfortably.
According to survey conducted by Harris Poll and Personal Capital, the average amount American adults at least $128,000 to feel financial secure. This isn’t far off from what economits say Americans need to earn to keep up with rising costs, which is $67,521, according to the U.S. Census Bureau.
“Older adults on Social Security will get a much-awaited COLA increase of 8.7% next year,” said Ramsey Alwin, President and CEO of the National Council on Aging (NCOA). “While this increase is historic and needed, it is also inadequate for the millions of older Americans who face skyrocketing housing and health care costs across the country. People age 65+ are the only group for which poverty increased last year, according to the U.S. Census Bureau. We now have almost 6 million older adults who cannot age with dignity. This is a clear indication that our nation’s support programs are not meeting today’s realities.”
Black households in particular claim they need a bigger boost in social security benefits.
“As always, poverty is higher for women and people of color. Many of them had low wages throughout their working lives, which means they have lower Social Security benefits,” Alwin said in a news release. “The average Social Security retirement benefit in January 2022 was about $1,600, but many are lucky if they have even that. One in four of those receiving Social Security depend on it for 90% of their income. We need to make Social Security more responsive to the needs and circumstances of women by eliminating remaining gender inequities.”