Social Security checks will increase next year, but for retired staffing company executive Lou Scrivani, 76, the bump won’t even be enough to cover increases in his health care costs, much less the inflated prices of everything else over the past year.
Starting in January, more than 66 million beneficiaries of the program will receive a cost-of-living adjustment, or COLA, of 3.2%, averaging out to more than $50 extra each month.
COLA is meant to help Americans keep up with inflation so they can maintain their standard of living year to year. But the hikes are falling short, many seniors say. The cost of items older adults spend most of their money on consistently outpaces COLA, according to The Senior Citizens League, a nonprofit advocate for older adults. The biggest expense is health care.
Even with COLA “we will not net enough to keep up with current inflation,” said Scrivani, who lives in Delaware.
Show me the math
This is how Scrivani does the math for himself and his wife:
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Total monthly COLA increase for both: about $135.
LESS:
◾ Medicare Part B monthly increase: about $10 x 2 = $20
◾ Drug plan increase: $25.70 x 2 = $51.40
◾ Medicare supplement increase: $10 total
That means from the $135 monthly COLA increase, the Scrivanis keep about $53.60. The deductible on their drug rose $60, however.
“So goodbye $53 increase,” Scrivani said. “With current inflation rates, that puts us in negative…
