Overview

• The 2.5 percent cost-of-living adjustment would add roughly $50 to the average $2,000 monthly benefit, totaling about $600 over the year before premiums.
• A $21.50 rise in Medicare Part B premiums will cut the net boost to about $28.50 per month, reducing the effective raise to roughly 1.4 percent.
• Long-term declines in COLAs have eroded retirees’ purchasing power by over one-third since 2000, as inflation in housing and transportation outpaces benefit increases.
• Surveys by AARP and The Senior Citizens League find 63 percent of seniors dissatisfied with benefit levels and 73 percent relying on Social Security for more than half their income.
• Regional cost gaps mean benefits cover 34.6 percent of retirees’ spending in McAllen, Texas, but only 24.3 percent in San Francisco, California.