Increase in Social Security Payments Helps, But Doesn't Keep Up With Increasing Costs

Press Release

Congresswoman Chellie Pingree said a 1.7% increase in Social Security checks next year will be helpful for seniors and other beneficiaries, but it doesn't make up for the true increase in costs many seniors face.

"I'm glad seniors will be getting a cost of living increase next year, and since Medicare premiums are not increasing they'll get to keep all of that," Pingree said. "But as any senior will tell you, the prices they pay for essentials is going up faster than the cost of living increases in their Social Security. The government should change the way they measure inflation for seniors to moreaccurately reflect their rising expenses."

Currently, Social Security cost of living (COLA) increases arepegged to the national Consumer Price Index (CPI). Pingree is a cosponsor of a bill that would create a Consumer Price Index-Elderly (CPI-E)--an index that does a better job measuring the cost of what seniors spend much of their income on, like prescriptions drugs.

The Social Security Administration announced a 1.7% COLA for next year, marking the third year in a row of increases below 2%. However, some years the COLA is completely offset by an increase in Medicare Part B premiums, but this year those premiums did not change, allowing seniors to keep the full COLA.

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