THE NATIONAL COMMITTEE TO PRESERVE SOCIAL SECURITY AND MEDICARE
~ Protecting the Health and Economic Future of Older Americans ~

August 14, 2009

NEWS RELEASE

After 74 Years, Social Security Still Keeps Millions from Poverty, even during Tough Economic Times

Yet, lack of COLA increase has many concerned

For many retirees, Social Security provides the only stable and predictable income in this uncertain economy where shrinking investments, rising food and fuel costs and skyrocketing healthcare expenses make living on a fixed income increasingly difficult.  While Social Security remains the bedrock of retirement security, the average Social Security retirement benefit is modest - only $13,800 a year , less than the annual minimum wage income of $15,080.  Projections that lower inflation will mean no cost of living increases for the next two years has many beneficiaries worried about their ability to keep pace with rising expenses.

"In this economy, the Social Security COLA is especially important for seniors. But a s time goes by, more and more of their Social Security benefit checks will be eaten up by rising health care costs. In fact, it's predicted Medicare premiums and out-of-pocket expenses will consume nearly $3 of every $10 of the average Social Security benefit. Seniors can't afford to lose their Social Security COLA.  That's why the National Committee urges Congress to create a modest COLA for the next several years above the cost of their Medicare premium to help seniors keep up with the steadily rising cost of health care."

The National Committee, on behalf of its millions of members and supporters, sent a letter to Congress in July asking them to restore the COLA for 2010. We will continue to work with members of Congress to pass COLA legislation this year to help 49 million beneficiaries continue to weather this current economic storm.

Media Inquiries to:
Pamela Causey 202-216-8378/202-236-2123
Kim Wright 202-216-8414
www.ncpssm.org