From The Bulletin on Retirement and Disability:
... Social Security Disability (SSD) program beneficiaries, like other consumers, have been negatively affected by inflation over the past several years. In a survey from June of 2023, more than half (59 percent) of SSD program beneficiaries reported higher prices for the disability-related goods and services they need to purchase, and more than one-quarter reported reducing food spending to cover disability-related costs, Zachary Morris and Stephanie Rennane found in Examining the Impact of Inflation on the Economic Security of Disability Program Beneficiaries (NBER RDRC Paper NB23-08).
Using new survey data, the researchers found that 82 percent of beneficiaries reported out-of-pocket expenses related to their disability, with average annual spending of $4,412 and median spending of $384 as of June 2023. Fifty-nine percent of beneficiaries reported higher spending on disability-related goods and services compared to two years earlier. In response to these rising costs, 25 percent of beneficiaries indicated they went into debt; 43 percent found recent COLA adjustments insufficient to maintain their standard of living. ...
5 comments:
Yes, it's very difficult on us claimants. I realize it's difficult for everyone right now, but living on less than $1000 a month right now? It's almost impossible. The cost of living adjustment is NOT going to change that. I'll get a little less than $20/mo more. Not looking forward to...well anything, at the moment. My state has SKYROCKETED in prices. I am leaving because of the cost of living, I'm falling into debt. Never had this happen in the 15 years I've lived here.
The problem isn't inflation, it's income inequality. Social Security recipients and the lower/middle classes have been losing ground for years to the oligarchy. During the 1960s and 1970s, income inequality in the U.S. was relatively low, largely due to high union membership, robust manufacturing jobs, and progressive tax policies. The 1980s marked a turning point as income inequality began to increase sharply. Economic policies such as tax cuts for the wealthy, deregulation, and decreased bargaining power for unions contributed to a widening gap. During the 1990s and 2000s, income inequality continued to grow. After the 2008 financial crisis, the recovery was uneven. By the 2010s, income inequality had reached its highest levels since the Great Depression. The top 1% of earners saw substantial income growth, while many workers faced stagnant wages, job insecurity, and rising costs of living, particularly for housing, education, and healthcare.
ummm, yes, the problem is inflation.
The problem is COLA is chained to the wrong index for calculating what is more expensive for the people on the program.
That's by DESIGN... So, they can claim inflation is lower than it really is. Most of us can't afford a yacht, so if it goes up in price or not, that's totally irrelevant to us. The price of gas, eggs, milk, etc. can have a big effect. Rent and electricity prices, even more.
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