Seniors Struggle as Cost-of-Living Climbs

EVERYONE. I'M MIKE WALTER, THANK YOU FOR JOINING US. THE SOCIAL SECURITY ADMINISTRATION ANNOUNCED EARLIER THIS WEEK A COST OF LIVING ADJUSTMENT FOR NEARLY 72 MILLION BENEFICIARIES BEGINNING IN JANUARY OF 27 RECIPIENTS WILL GET A 3.6% INCREASE. THAT IS THE LARGEST INCREASE IN BENEFITS SINCE 2023. THE EVENT JUST MEANT IS ON PAR WITH THE RISE IN INFLATION OVER THE PAST YEAR, WHICH HAS BEEN ABOUT 3.7%, ACCORDING TO THE U.S. BUREAU OF LABOR STATISTICS AND WHILE THE RAYS AND SOCIAL SECURITY IS GOING TO HAPPEN, THERE ARE CONCERNS IT MAY NOT BE ENOUGH FOR THOSE OLDER ADULTS WHO HAVE TO RELY ON THE BENEFITS AS THEIR PRIMARY SOURCE OF INCOME. WITH MORE ON THE 2027 IN COST OF LIVING ADJUSTMENT. I'M JOINED BY BILL 20 SENIOR VICE PRESIDENT OF GOVERNMENT AFFAIRS WITH AARP. AND THANKS, BILL, FOR TALKING WITH US. SO JUST WHAT IS THIS GOING TO MEAN TO REAL PEOPLE? 3.6% INCREASE IN SOCIAL SECURITY. >> WHAT IT MEANS IS SOCIAL SECURITY IS ABLE TO KEEP UP WITH INFLATION. AND SO THE COST OF LIVING ADJUSTMENT. THE CALL AS WE CALL IT, IS THERE TO HELP MAKE SURE THAT AS INFLATION GOES UP, YOUR SOCIAL SECURITY CAN GO UP JUST ENOUGH TO KEEP UP WITH IT SO THAT YOU CAN CONTINUE TO AFFORD TO PAY THE BILLS YOU HAVE TO PAY IN THE QUEUE FOR DINNER TABLE FOR SOME THE AVERAGE PERSON IN AMERICA WHO'S ON SOCIAL SECURITY. THEY'RE GOING TO GET ABOUT A $75 INCREASE IN 2027 OR ABOUT $900 OVER THE COURSE OF THE YEAR. SO IT'S A DECENT AMOUNT OF MONEY. BUT WHAT WE KNOW IS THAT MANY PEOPLE SAY IT'S NOT NEARLY ENOUGH TO KEEP UP WITH THE PRICES THAT THEY'RE SEEN. YEAH, EXACTLY. AND IT TELL US SOME EXAMPLES. WHAT OUR PEOPLE REAL AMERICANS HAVING TO CALL IT. >> IN ORDER TO TRY TO KEEP UP WITH INFLATION. >> THINGS ESSENTIAL THINGS THEY HAVE TO GIVE UP. >> WELL, WE KNOW THAT THE THINGS THAT ARE REALLY DRIVING, THAT THE SQUEEZE THAT PEOPLE ARE FEELING, ESPECIALLY IN PLACES LIKE FLORIDA ARE ELECTRIC PRICES. THE ELECTRICITY RATES ARE GOING UP. PEOPLE ARE PAYING EVEN MORE AND ELECTRICITY THAN THEY HAVE PAY BEFORE. THEY'RE SEEING HIGHER GAS PRICES. THEY'RE SEEING HIGHER MORTGAGES, WORRIED RATES ARE HIGHER. RENTS ARE HIGHER. THAT IS A REALLY BIG SQUEEZE FOR PEOPLE. AND THOSE ARE ALL THINGS THAT THEY REALLY CAN'T CONTROL. YOU CAN'T A SHOP AROUND FOR A LOT OF ELECTRIC PRICE. YOU PAY WHAT YOU HAVE TO PAY AND SO WHAT WE'VE ASKED PEOPLE AS WHAT WOULD WHAT WOULD WHAT WOULD IT MEAN TO HAVE EVEN LIKE A 5% CUT IN SOCIAL SECURITY? AND THEY TELL US THE ONLY THING LEFT FOR THEM TO CUT BACK ON AT THIS POINT IS FOOD. YOU KNOW, THE OR MEDICINES THAT THEY WOULD BE THERE HAD TO STOP TAKING THE MEDICINES ARE DOCTORS WHO PRESCRIBED OR THEY WOULD HAVE TO CUT DOWN ON THE FOOD THAT THEY EAT. AND IF YOU THINK ABOUT WHAT THE IMPLICATIONS ARE OF THAT FOR OUR SOCIETY FOR THE HEALTH OF OLDER ADULTS. IT'S REALLY SOBERING. AND I THINK IT IT REALLY SHOWS HOW IMPORTANT THE SOCIAL SECURITY COST OF LIVING ADJUSTMENT IS TO TRY TO HELP PEOPLE CONTINUE TO MAKE ENDS MEET AND HIGH INFLATION YEARS LIKE THIS ONE. YEAH. ONCE. >> IN YOUR HEART ABOUT THAT, HOW DO YOU FEEL ABOUT THAT HIT THE EU IS SOMEONE WITH AARP? WHAT THEY'RE TELLING YOU WHAT THEY'D HAVE TO GIVE UP TO. >> IT'S REALLY HEARTBREAKING. AND I THINK WE I HAVE HEARD THE STORIES WE'VE WE'VE HEARD SO MANY TIMES. THE IS SOMETHING LIKE 28% OF PEOPLE DON'T TAKE THE PILLS. THEIR DOCTORS ARE PRESCRIBING FOR THEM BECAUSE THEY CAN'T AFFORD IT THIS TIME BECAUSE THEY'RE HAVING A SIDE EFFECT. IT'S NOT BECAUSE OF ANYTHING LIKE THAT IS THEY SIMPLY CAN'T AFFORD IT. AND SO WHAT IT MEANS IS THAT MEANS PEOPLE ARE SICKER AND THERE AND THEY'RE STRUGGLING MORE THAN THEY SHOULD. AND THERE'S NO REASON AN AMERICA THAT ANYONE CERTAINLY NOT OUR SENIOR SHOULD BE GOING THROUGH THAT. AND THAT'S A BIG REASON WHY WE'RE HERE AND FIGHTING FOR PEOPLE FIGHTING ON CAPITOL HILL TO MAKE SURE THAT WE PROTECT AND STRENGTHEN SOCIAL SECURITY FOR YEARS TO COME. >> WELL, MEN AT THE SAME TIME. >> AND ILL PEOPLE HAVE TALKED ABOUT, WELL, IT'S GOING TO BE INSTALLED AND THEN ANOTHER 5 AND A HALF YEARS IN THE EARLY, MAYBE BY 2032, WHAT DOES THIS INCREASE MEAN FOR THE SOLVENCY? OF THE SOCIAL SECURITY PROGRAM? >> WELL, THE COST OF LIVING INCREASE IS BAKED INTO SOCIAL SECURITY. NOW SINCE THE MAIN TO LATE 1970'S, IT IS AUTOMATIC AS PART OF SOCIAL SECURITY. AND IT REALLY IS THE THING THAT MAKES SURE THAT SOCIAL SECURITY CAN STAY STRONG AS YOU GET OLDER. SO OF IT, WE DIDN'T HAVE A COLA. SOMEONE IN THEIR 80'S OR 90'S WOULD FIND THAT THEIR SOCIAL SECURITY CHECK WAS NO LONGER CLOSE ENOUGH TO KEEP UP WITH THE HIGH PRICES. THEY'RE PAYING AND IT PUSHED SO MANY PEOPLE INTO POVERTY. SO THAT CAUSE ACTUALLY ESSENTIAL TO KEEPING PEOPLE OUT OF POVERTY. IT'S REALLY AN ESSENTIAL PART OF SOCIAL SECURITY. WE KNOW THAT INSOLVENCY IN SO SICK IS ABOUT 6 YEARS AWAY. 2032, IT'S IMPORTANT TO RECOGNIZE THAT INSOLVENCY DOESN'T MEAN IT'S RUNNING OUT OF MONEY. IT DOESN'T MEAN THAT IS BROKE OR BANKRUPT. IT MEANS THAT IT CAN ONLY PAY ABOUT 80% OF THE BENEFITS IN 2032. AND IT NEEDS AT 20% SHORTFALL FIXED. THAT'S ABSOLUTELY SOMETHING CONGRESS CAN DO. THEY'VE DONE IT BEFORE IN THE 70'S AND THE 80'S THEY'VE BEEN ABLE TO DO THIS. IT'S ALSO IMPORTANT RECOGNIZE IT 6 YEARS FROM NOW IS THE END OF THAT TERM OF THE UNITED STATES SENATORS WHO WE'RE ELECTING IN NOVEMBER ACROSS THE COUNTRY. AND SO THE PEOPLE WE ELECT IN NOVEMBER FOR THE SENATE WILL BE IN THE SENATE WHEN IT'S TIME TO DECIDE WHAT TO DO WITH SOCIAL SECURITY. SO IT'S IMPORTANT FOR VOTERS TO BE ACTIVATED ON THAT AS WELL. BUT THERE'S PROPOSALS THAT WOULD CUT THE COLA IN ORDER TO, YOU KNOW, PUT MORE MONEY INTO SOCIAL SECURITY. I GUESS. BUT IT WOULD REALLY MEAN TAKING MONEY OUT OF PEOPLE'S POCKETS WHO NEED IT DESPERATELY TO KEEP UP WITH HIGHER PRICES. RIGHT NOW. >> IT WAS A MUCH RACE. DO YOU HAVE THAT THE POLITICIANS WE'LL TAKE ACTION IN THE NEXT 6 YEARS. SO THAT'S THE SYSTEM CAN SURVIVE THAT THERE MIGHT BE REFORMS. >> I HAVE A LOT OF FAITH THAT POLITICIANS ARE GOING TO FIX THIS BECAUSE AGAIN, THEY'VE DONE THIS BEFORE. SOMETIMES THEY WAITED TO LET IN 1983. THEY WAITED FOR THE ALMOST THE VERY LAST MINUTE TO DO IT. BUT THE TRUTH IS, YOU KNOW, IN FLORIDA, THERE'S 5.2 MILLION PEOPLE WHO ARE RECEIVING THE SOCIAL SECURITY BENEFITS THAT THEY'VE EARNED. IT PUTS ABOUT 120 BILLION DOLLARS INTO FLORIDA'S ECONOMY. THAT IS THAT IS SOMETHING THAT POLITICIANS ARE GOING TO REALLY WRESTLE WITH GOING HOME TO THEIR VOTERS. 2032 IS AN ELECTION YEAR TOO. I DON'T KNOW WHAT POLITICS IS GONNA WANT TO GO ON TO THEIR VOTERS AND SAY I FAILED. I DIDN'T GET THE JOB DONE. THEY SENT ME TO DO. I THINK IT'S JUST TOO BIG OF AN ISSUE FOR THAT. I THINK IT IS SOMETHING THAT THAT AT THE END OF THE DAY, THEY'RE GOING TO LISTEN TO THE VOTERS AND THEY'RE GOING TO DO THE RIGHT THING AND PROTECT SOCIAL SECURITY. DON'T WRITE. THANK YOU, BILL SWEENEY. >> FROM AARP, GOOD TALKING WITH YOU TODAY. >> THANK YOU SO MUCH.