Survey says Social
Security cost of living adjustment a top issue facing
seniors
In a
poll of 522 seniors, they ranked the need for a fair
Social Security Cost of Living Adjustment (COLA), the small annual
increase they receive each year to keep up with inflation, as the
most important issue they face. The poll has a margin of error of ±4
percent.
Seniors
ranked the need for a fair annual COLA above other high-profile
issues facing the elderly, such as the Medicare prescription drug
benefit plan, the importation of prescription drugs from other
countries, and overall Social Security reform.
When asked
to rate how important a fair Social Security COLA was on a 10-point
scale, respondents scored it an average of 9.7, with 84 percent of
respondents rating it a 10.
In
contrast, when asked to rate the importance of a Medicare
prescription drug benefit plan (a subject much in the news
during the polling period due to the mid-May enrollment
deadline for Medicare Part D), seniors scored it an average
of 8.4, with only 59 percent rating it a 10. Importing
prescription drugs fared even worse, with only 31 percent
rating it a 10.
How important
are each of these issues to you?
|
Please
rate each on a scale of 1 to 10. |
1 Not
at all important |
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
Extremely important |
Total
|
Average
rating (1=not at all important, 10=extremely important)
|
|
Medicare
prescription drug benefit plan |
4%
|
2%
|
1%
|
2%
|
6%
|
4%
|
6%
|
8%
|
9%
|
59%
|
100%
|
8.4
|
|
Social
security 'notch' reform |
4%
|
1%
|
1%
|
2%
|
6%
|
4%
|
5%
|
8%
|
8%
|
59%
|
100%
|
8.4
|
|
Fair
social security cost of living allowance |
0%
|
0%
|
0%
|
0%
|
1%
|
1%
|
1%
|
5%
|
7%
|
84%
|
100%
|
9.7
|
|
Social
security reform & protecting benefits |
1%
|
0%
|
0%
|
0%
|
1%
|
1%
|
1%
|
7%
|
8%
|
81%
|
100%
|
9.6
|
|
Importation of prescription drugs from other countries
|
12%
|
3%
|
2%
|
4%
|
10%
|
8%
|
9%
|
13%
|
8%
|
31%
|
100%
|
6.9
|
"Although
these polling results come as a bit of a surprise, the fact is that
the Social Security Cost of Living Adjustment is no longer being
faithful to its original purpose by helping seniors keep up with
inflation," said Ralph McCutchen, Chairman of TREA Senior Citizens
League. "Over the past five years, the COLA has averaged just under
2.6 percent per year – but with Medicare premiums, home energy bills
and gas prices all soaring by double digits each year, how are
seniors supposed to keep pace?"
Each year,
the government calculates the amount of the increase to the Social
Security COLA based on changes to a Consumer Price Index (CPI). But
the CPI used to calculate the COLA increase is based on the spending
habits of young, urban workers – a group of people who don't spend a
large percentage of their income on medications, physician visits
and health care.
There is a
different CPI, known as the CPI-E, or Consumer Price Index for
Elderly Consumers, which more accurately tracks the spending
patterns of elderly consumers. If the government used this index to
increase the COLA each year, seniors would see some much-needed
relief.
For
example, a senior who retired in 1984 with an average benefit of
$460 per month would have received a total payout of close to $9,500
more over the past 22 years under the CPI-E. There is currently
legislation pending on Capitol Hill to implement the CPI-E. More
than 100 members of Congress have signed onto H.R. 3601, known as
"The Consumer Price Index for Elderly Consumers Act."
Methodology:
This poll was conducted by regular mail between April – July, 2006,
and was sent to a random sample of 2,000 TREA Senior Citizen League
members. Members returned 522 surveys. The results have a four-point
margin of error. Data collection, tabulation and verification by the
National Research Center of Boulder, CO.