According to The Senior Citizens League, many older Americans turned to public assistance to make ends meet in 2022. (iStock)
Inflation took a major toll on the budgets and financial well-being of many older Americans in 2022, according to research from The Senior Citizens League.
While Social Security benefits rose by 5.9% in 2022, inflation rose at an annualized rate of 7.1% in November, as measured by the consumer price index (CPI).
The 5.9% Cost of Living Adjustment (COLA) received from January to December remained an average of 46% lower than actual monthly inflation, according to the report from the Senior Citizens League. The group says that this drop “took the average Social Security payment of $1,656 by more than $42 per month and more than $508 short for the year.”
The Senior Citizens League added: “While Social Security recipients look forward to an 8.7 percent increase in Social Security benefits in January, inflation has taken its toll on retirees’ budgets in 2022.”
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Prices of basic goods rose sharply for older Americans
Many seniors saw healthcare premiums and the price of basic goods such as fuel oil and food rise sharply in 2022, according to research by The Senior Citizens League.
Between October 2021 and October 2022, the fastest growing costs for households with consumers aged 65 and over were heating oil (68%), airline tickets (42.9%), flour and ready-mixes (24.6%), health insurance (20.6%) and natural gas (20%).
“In older households, many of the goods and services with the most stubbornly high prices account for the majority of spending,” the Senior Citizens League said in its study. “Since 2020, price increases for virtually everything have been the biggest challenge for older Americans, particularly lower-income seniors who rely on Social Security for most or even all of their income.”
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In 2022, more seniors sought help from the government
Rising prices of basic goods seemed to be driving many older Americans to turn to public aid for help, the report from the Senior Citizens League said.
The group found that 33% of respondents said they had applied for food stamps or visited a food bank in the past 12 months, up from 22% in 2020.
The league also found that 17% of respondents will have applied for help with heating bills by 2022, up from 10% in 2020.
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