Opinion: Never mind the Social Security increase, seniors are in trouble — here’s why
January 21, 2019 by Paul Brandus
You might have heard that Social Security checks are going up 2.8% next year, the biggest rise in seven years. That translates into an average benefit of $1,461 a month, up $39.
While welcome, it’s necessary to remember that the increase is tied to inflation. Higher payouts will simply enable retirees to keep up with the rising cost of living. It doesn’t mean that anyone’s standard of living will go up—as if an extra $1.28 a day will do much in the first place. Think of a treadmill: You’re not going anywhere.
In fact, retirees and those who are eyeing retirement risk going in a different direction: backward. A study by the Schwartz Center for Economic Policy Analysis at the New School finds that about 40% of middle-class Americans will live close to or in poverty by the time they reach age 65. “Golden years?” For millions, it’s doubtful.
Since more people retire at 62 than any other age (because that’s the earliest they can tap into Social Security), let’s use that as a benchmark.
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