The Senior Citizens League (TSCL), a nonpartisan organization advocating for older Americans, has introduced a proposal for a “one-time catchup payment” to Social Security beneficiaries. The aim of this payment is to help offset the rising inflation that has significantly impacted retirees’ purchasing power.
Addressing the Shortfall in COLA Adjustments
TSCL argues that recent Cost-of-Living Adjustments (COLAs) have not adequately addressed the increasing costs of essential goods and services like food, housing, and healthcare. These rising costs have eroded the purchasing power of many retirees, and TSCL believes that the current method of calculating COLAs—based on the Consumer Price Index for Urban Wage Earners (CPI-W)—does not accurately reflect the spending patterns of older Americans, particularly in terms of healthcare and housing.
Proposed Solution: A One-Time Catchup Payment
In response, TSCL has suggested a one-time catchup payment, similar to past initiatives like the 2009 Economic Recovery Payments and the Economic Impact Payments distributed during the COVID-19 pandemic. Although TSCL has not provided specific details on the amount or logistics, the group hopes this would restore some of the purchasing power lost during recent inflation spikes, especially for seniors living on fixed incomes.
Survey Findings and Support for the Proposal
A TSCL survey of nearly 2,000 Social Security beneficiaries revealed that 20% of respondents spend over $1,000 monthly on healthcare alone. Furthermore, 96% of those surveyed supported recalculating COLAs using the Consumer Price Index for the Elderly (CPI-E), which is seen as a more accurate measure of inflation’s impact on people aged 62 and above.
Growing Dissatisfaction Among Seniors
According to the survey, nearly two-thirds of seniors are unhappy with their Social Security payments, and 94% believe that the 2025 COLA will not be enough to keep up with actual inflation. Reforming both Social Security and Medicare is also a top priority for nearly 95% of respondents.
TSCL’s Executive Director, Shannon Benton, emphasized that a catchup payment would offer urgent relief to retirees, particularly given that rising Medicare Part B premiums often nullify any COLA increase.
Concerns Over COLA Calculations
TSCL also voiced concerns over changes to data collection by the Bureau of Labor Statistics (BLS) in metropolitan areas, fearing that this could further distort inflation measurements used to determine COLAs.
Next Steps for Social Security Reform
TSCL’s proposal adds to the growing conversation around Social Security and its role in supporting seniors, particularly in times of economic instability. The organization urges policymakers to address these concerns, suggesting that Social Security benefits must be better aligned with the actual inflation rates experienced by seniors.
