Social Security Is Screwing Retirees

Prior to the last election, Democrat leaders, such as President Biden, V.P. Kamala Harris, Nancy Pelosi, Chuck Schumer and Hakeem Jeffries, wanted retirees to believe that they were the protectors of Social Security. They made bold statements that Republicans were trying to destroy Social Security. The real facts are that under the Democrat leadership, Social Security was screwing retirees.

Inflation has been destroying a Social Security recipient’s purchasing power. Even though Social Security benefits are adjusted for inflation using COLA’s, these increases often lag behind actual costs, especially for essential expenses like healthcare, housing and food. The purchasing power of Social Security benefits has decreased by over 40% since the 2000’s, and this trend is likely to continue unless COLA adjustments fully match inflation rates.

One of the largest factors affecting a retiree’s income is the rising costs of healthcare. Medicare Part B premiums and deductibles continue to rise, reducing net Social Security benefits. Over the years since 2020, even though Social Security payments rose at some of their highest rates in over 40 years, but when the increases were adjusted for inflation, retirees actually lost purchasing power. That’s why so many retirees are complaining that they can’t afford to live on what they are receiving. The Democrats over the last 4 years have been clamoring for an increase in the minimum wage, but are completely silent about the plight of retirees.

If Democrats were somehow able to get the minimum wage raised to $15.00 per hour that would mean that a person working 40 hours per week would earn $31,200.00.  But, at the same time, the average Social Security recipient would only get $21,918.00 per year. If you look at that by the month, a full-time worker earns $2,600 per month and an average Social Security recipient earns $1,826.50 a month. Why have they been silent on retiree’s benefits?

If we take a long hard look at Social Security it becomes evident very quickly that Social Security benefits are declining because of the Democrat created inflation. And the COLA formula that is being used does not allow senior citizens to keep up with inflation causing many to have make hard choices as to what bills to pay and what items to purchase. Add in the effects of rising healthcare costs as a person grows older and it becomes even harder for many to live.

One of the scariest issues facing seniors is that they will outlive their savings. And for most retirees, even having any savings, is an issue. God forbid a retiree has a calamity such as a stroke and in a heartbeat they will become penniless.

Another issue a retiree faces with their purchasing power declining is the fact that housing and living expenses are rising at out of control levels. Even if they live in a home with no mortgage, which a huge portion don’t, rent and property taxes are climbing at rates higher than inflation making paying bills a struggle. And energy and utility costs are also rising which is also disproportionately impacting their financial situation because of their having to live on fixed incomes.

But that isn’t all retirees living on Social Security have to worry about. Almost 40% of retirees have Social Security constitute 90% of their income. And those even those that do have savings are worried because for the longest time, interest rates weren’t high enough for them to generate any substantial amounts of income in order to help them live. Also, retirement has changed because pensions are something most retirees don’t have anymore. They have to rely on 401k’s and IRA’s which are subject to the swings of the stock markets.

Add up all these factors and it becomes very clear that Social Security’s inability to even keep up with inflation has a huge impact on retiree’s life style. For over a decade now Democrats made claims that they were the protectors of Social Security. But what were they protecting? With the change in the government maybe the new leadership will finally address the concerns of retirees and bring Social Security’s stature as a stable level of income for retirees instead of letting drown in debt in their golden years.