By Shannon Benton, Executive Director, TSCL
The economy has hit older Americans hard over the first half of the 2020s. First, pandemic-spurred inflation eroded their purchasing power on basics like housing and food. But that wasn’t enough: Annual costs for Medicare Part B premiums went up by about $485 between 2020 and 2025, wiping out most of the cost-of-living adjustments (COLAs) designed to help Social Security payments keep up.
To make up for this shortfall, TSCL has introduced the concept of a make-up payment called the Senior Stimulus. This one-time, lump-sum, and tax-exempt payment would pay retirees back at least some of their Social Security benefits’ lost value.
How Could It Work?
Implementation could be handled by the Social Security Administration (SSA), with payments disbursed similarly to prior economic relief efforts, such the COVID-19 Economic Impact Payments.
Is There Precedent?
While there’s no direct precedent for a Social Security catch-up payment, there is historical support for related actions:
· The 2009 one-time $250 economic recovery payment for Social Security recipients.
· Retroactive adjustments in certain federal and military benefit programs.
· State and municipal retirement systems that have implemented delayed or retroactive COLA increases.
How Much Would a Payment Be?
TSCL has proposed a $1,400 stimulus payment for all retired Americans who receive Social Security benefits because we believe that retirees deserve compensation for the real-world losses they’ve experienced during periods of unexpectedly high inflation.
What Can You Do to Get Involved?
Write your Congressional Representative. Bring questions about the Senior Stimulus to town hall meetings, or to your preferred political party. Support TSCL by exploring our website, signing our petitions, participating in our surveys, and, if you can, through your donations. We’re the only senior’s advocacy group in the country that’s funded entirely by Americans like you without help from the government or big business, so we’ll always be in your corner.
