- Older Americans have been forced to make some tough financial choices amid record high inflation.
- That includes spending emergency savings, seeking food assistance programs and taking on credit card debt, a recent survey finds.
- Some relief may possibly come with the Social Security cost-of-living adjustment and Medicare Part B premiums for next year.
For many older Americans, record high prices are jeopardizing their financial security just as they approach or live in retirement, according to a recent survey from The Senior Citizens League, a nonpartisan senior group.
The survey was conducted online in the first quarter and included 3,056 participants, 96% of whom rely on Social Security as a source of income.
Seniors are spending savings, taking on debt
Half of respondents ages 55 and up have spent emergency savings in the past 12 months in response to high inflation, the survey found.
Meanwhile, 47% have visited a food pantry or applied for benefits from the Supplemental Nutrition Assistance Program, or SNAP. Moreover, 43% have carried debt on a consumer credit card for more than 90 days.
Among the other common steps survey respondents had taken include applying for assistance with home heating or cooling costs, depleting a retirement or savings account, drawing down more retirement savings than usual or applying for a Medicare Savings Program or Medicare Extra Help for help with medical or prescription drug costs.
Interest rates on credit cards are poised to go up after the Federal Reserve on Wednesday raised interest rates by 0.75 percentage points, the biggest hike in 28 years. That may not help older Americans who have taken on more debt to cope with higher prices.
“When people are facing this type of inflation, those who have lower savings tend to be the ones who have to take on more debt to get the bills paid during the month,” said Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League.
Social Security, Medicare changes may provide relief
Social Security beneficiaries saw the biggest boost to their benefits in about 40 years in 2022, with a 5.9% cost-of-living adjustment.
The Senior Citizens League has estimated next year’s COLA could be 8.6%, based on the latest Consumer Price Index data.
