In the United States, millions of older adults trust Social Security payments each month to cover their basic needs. However, something is causing a great wave of discontent in this important sector of the population. A new report has exposed an uncomfortable reality: many retirees feel that what they receive is not enough.
Outrage is growing and criticism is directed squarely at the Social Security Administration (SSA, as it's known in English). Now they have the pressure to provide explanations.
According to a recent study conducted by The Senior Citizens League (TSCL), a large majority of older adults are dissatisfied, especially with the monthly benefits provided to them by the Social Security program.
The survey included nearly 2,000 American citizens over 62 years old. It revealed that 63% of participants believe that the amount they receive doesn't adequately cover their needs. Only a small 10% were satisfied with the payments, while the rest said they did not have a clear opinion on the matter.
The SSA needs to take action
This year, SSA announced a 2.5% increase in Social Security checks as part of the cost-of-living adjustment. This made the average payment exceed $2,000 per month. However, many claim that this increase doesn't make up for the constant rise in prices.
The costs of basic goods such as food, housing, and transportation have risen faster than overall inflation. This has especially affected older adults who rely exclusively on their pension.
Financial analyst Chris Motola explained in statements to Newsweek that price increases are hitting everyone, but especially retirees. One of the key reasons, he points out, is that traditional private sector pensions have practically disappeared.
This leaves many older adults depending solely on Social Security to live. The survey also revealed that 39% of retirees get 100% of their income from Social Security. Meanwhile, 73% rely on the program for more than half of their monthly budget.
In these cases, any difference between actual inflation and the cost-of-living adjustment can represent a major problem.
They ask SSA for an effort
Another worrying fact from the report is that 80% of respondents believe that inflation over the past year has been higher than SSA's 2.5% increase. This indicates a strong perception of loss of purchasing power among the elderly population. Many claim that, especially in areas such as rent and transportation, prices have risen much more than official indexes reflect.
In addition, the urban environment also plays a role. Those who live in areas without nearby services or without access to public transportation face higher expenses. This worsens the economic situation of those who already have limited resources.