In 1972, when I was in high school and certainly not thinking about retirement, AARP fought for and won automatic, yearly Social Security cost-of-living adjustments, or COLAs. The nonprofit did this because American senior citizens need reliable protection from rising prices; and, before the law passed, increasing Social Security payments required a specific act of Congress.
Social Security COLAs remain annually essential for the more than 1.1 million Minnesotans receiving Social Security. The amount the COLA increases each year is determined based on inflation, so seniors’ monthly Social Security checks reflect true costs of living.
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Unfortunately, Washington, D.C., insiders are proposing a flat-rate COLA, which would not keep up with inflation but would significantly cut the amount of money seniors receive. This would lead to increased financial hardship for many, especially people in their 80s and 90s.
Most of us have sticker shock when we buy groceries and gas up our cars. The newly announced 3.6% Social Security COLA would provide some relief beginning in 2027. But even with an adjustment for inflation, many older residents would continue to struggle with the cost...