New Report Details Seniors Shrinking Buying Power & Rising Costs
- Social Security benefits have lost 30% of their buying power since 2000
- 2021 SS Cost-of-Living Adjustment will be just 1.3%, one of the lowest ever paid
- Ave. annual out-of-pocket prescription drug costs have risen 252% ($3,875 in 2020)
Social Security checks in 2020 are almost 20 percent lower than they otherwise would be, due to the long term impact of extremely low annual inflation adjustments, according to a new analysis from The Senior Citizens League (TSCL). The new report follows last week’s announcement by the Social Security Administration that the 2021 cost – of – living adjustment COLA will be just 1.3 percent, making it one of the lowest ever paid.
Americans’ Social Security checks have lost approximately 30% of their buying power since 2000, according to analysis from the Senior Citizens League. For many retirees 65 and up, most or even all the low Social Security COLAs are swallowed up by rising Medicare premiums and out-of-pocket costs. Since 2000, COLAs have increased Social Security benefits a total of 53 percent, yet typical senior expenses grew almost twice as fast — 99.3 percent. Out-of-pocket prescription drug costs have risen the most, 252% since 2000 to over $3,875, toping the list of seniors rising costs. Average Medicare Part B premiums are second on the list of rising costs, climbing 218% to $144.60.
RxImportation Relief for Seniors & Medicare Beneficiaries
Personal prescription importation from licensed online Canadian pharmacies offers $2,940 average annual savings. New analysis of the CPPI Annual Prescription Importation Survey shows that nearly three quarters of Americans surveyed who import prescription drugs are Medicare beneficiaries.
- More than 60% of Medicare beneficiaries who import prescription drugs save over $100 a month.
- Medicare beneficiaries who import prescription drugs reported an average annual savings of $3,336 ($278/month).
- Medicare beneficiaries who spend over $300 a month (18%) report an average $870 monthly savings from prescription drug importation.
COLAs have never remained so low, for such an extended period of time in the history of Social Security. Analysis found that between 2009 and 2020 COLAs have averaged an increase of just 1.4%. An “average” retiree benefit of $1,075 per month in 2009 has grown to $1,249 in 2020. However, if COLAs had averaged 3 percent, that benefit would be $247 per month higher today (19.8 percent higher), and those individuals would have received $18,227.40 more in Social Security income over the 2010 to 2020 period. Over the 20 – year period covering 1990 to 2009, COLAs routinely averaged 3 percent annually, and were even higher before that period.