JustCare

Social Security benefits often don’t cover even basic necessities

Written by

Diane Archer

in

,

Lorie Konish writes for CNBC.com on the lack of funding in Social Security and the need to increase Social Security benefits. Millions of retirees are struggling to pay for basic necessities. Congressman John Larson argues that Congress should not kick the can down the road. How quickly will Congress act?

President Biden advocated during his presidential campaign for raising Social Security checks to at least 125 percent of the federal poverty level. He also said that people with pension income should not see their Social Security benefits reduced. Representative Larson seeks to increase benefits.

President Biden and Congressman Larson want to increase payroll contributions for people with high incomes to help offset the cost of raising Social Security benefits for people with low incomes.

The average annual Social Security benefit today is $18,500. But, some people–predominantly women and people of color–receive as little as $12,880, less than the federal poverty level. And 40 percent of people depend heavily–if not exclusively–on Social Security income to cover their expenses.

The Social Security Fairness Act would end the policy of reducing the Social Security income of people who have federal, state or local pensions. But, it would not increase benefits to people who did not also have federal, state or local pensions.

While Democrats hold a majority in both the House and the Senate, it is razor thin. Time will tell how much the Democrats can accomplish.

Here’s more from Just Care:

Comments

One response to “Social Security benefits often don’t cover even basic necessities”

  1. BC Shelby Avatar
    BC Shelby

    …what needs to be done is eliminate the earnings cap. That would provide enough funds to not only make the trust solvent through the century but beyond, as well as allowing for an increase in the benefit amount. The formula for determining Living Cost Adjustments must also be changed to reflect real expenses seniors and the disabled face. Rend must be a bigger factor as more and more seniors and disabled today are renters rather than home owners. In many cities rents are skyrocketing even in what is supposed to be federally subsidised low income housing (of which there is an acute shortage).

    For example the rent I pay for a very small studio (in a subsidised building no less) takes half of my monthly benefit. Furthermore back to back rent increases pretty much negated the Living Cost Adjustments I received in 2019 and 2020 (the LCA for 2020 was actually 10$ less than the rent adjustment). Were it not for the stimulus payments I would have fallen behind.

    Medicare should also be free for SS recipients as first, we also pay into it all our working lives and second, the monthly premium takes a significant bite out of our benefits. The current Medicare monthly premium is just about as much as what I was paying for a company sponsored health coverage when I was working and bringing in twice what I receive now. It was tough even then on the monthly budget.

    For now I am covered by my state’s Medicare Savings Plan but once my benefits pass a certain threshold (1,060$ per month which likely will happen with next years projected LCA (about 5%), that ends and I will have to shell out the 144$ (or whatever it is now) every month for Medicare. that would set me back to less than what I was receiving when I first qualified for SS Disability 4 years ago (only 913$ Net after the premium). In my first year of benefits I received 939$ per month. Given that Net income after the premium, my rent jumps to 55% of my net monthly income and possibly even more if there is another rental increase. So I stand to lose far more than I gain next year. I will also be back on just the basic Medicare coverage as the Savings Plan also covers expenses parts A and B don’t. There is no way on 913$ a month I can afford an advantage plan to cover services I lose.

    So indeed something needs to be done as people like myself, who have worked primarily in low paying jobs and/or had been self employed for a time, slip even further back into poverty than move up out of it.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

More posts