The ongoing government shutdown has caused a ripple effect, impacting the lives of millions of Social Security beneficiaries. A crucial announcement, the annual cost-of-living adjustment (COLA), has been delayed, leaving many retirees and their families in a state of uncertainty.
Originally set for Wednesday, the 2024 COLA announcement is now scheduled for October 24th, tied to the September Consumer Price Index (CPI) release. This delay highlights the broader challenges faced by individuals relying on Social Security benefits, as they struggle to plan their finances amidst the shutdown's third week with no resolution in sight.
Projections by advocacy groups like the Senior Citizens League and the AARP estimate a COLA increase of approximately 2.7%. This adjustment is vital for the 70.6 million people, including retirees, the disabled, and children, who depend on Social Security benefits. However, there are concerns that even with this increase, it may not be enough to keep up with rising costs.
But here's where it gets controversial... Sue Conard, a 75-year-old retired nurse and Social Security recipient, has a powerful message. She believes the current COLA calculation is flawed because it doesn't consider the unique expenses of older Americans, particularly healthcare costs. Conard and other retirees are advocating for a change in the calculation method, proposing the use of the Consumer Price Index for the Elderly (CPI-E) instead.
"The issue of how the COLA is determined is fundamentally wrong," Conard stated, "because healthcare, a significant expense for older adults, is not factored into the standard CPI."
