Call 888-741-5172 for Home Instead Senior Care services in your area.
Sharing is Caring:

Older Adults Face Declining Buying Power

Senior and her daughter plan finances together.
Since 2000, the Social Security cost of living adjustment (COLA) has increased just 31 percent, while typical senior expenses have jumped 73 percent, more than twice as fast.

Find home care near you or your loved one:

January 9, 2012

For seniors who want to go back to work after retirement, the local Home Instead Senior Care® office is a good place to begin a job search. Schedules are part time and flexible — and the end result is help for other seniors.

Q. My 72-year-old mother seems to be short on cash, and I am concerned. Perhaps it’s my imagination that her Social Security check doesn’t go as far as it once did. As much as I would like to, I am not in a position to help. Mom is in good health and I think would like to work, but she’s a retiree. What could she do? She has a caring and compassionate heart and lots of energy.

Seniors have lost almost a third of their buying power since 2000, according to the Annual Survey of Senior Costs, released by the Senior Citizens League, a nonpartisan senior advocacy group. So your mother’s financial concerns may, in fact, be reality.

In most years, seniors receive a small increase in their Social Security checks, intended to help them keep up with the costs of inflation. But since 2000, the Social Security cost of living adjustment (COLA) has increased just 31 percent, while typical senior expenses have jumped 73 percent, more than twice as fast.

In 2011, for the second consecutive year, seniors received no COLA. Before 2010, seniors had received a COLA every year since 1975, when the automatic COLA was introduced. (Seniors are expected to receive a 3.6 percent COLA in 2012.)

A senior with the average Social Security benefit in 2000 received $816 per month, a figure that rose to $1072.30 by 2010. However, that senior would require a Social Security benefit of $1,414.70 per month in 2011 just to maintain his or her 2000 lifestyle.

A majority of the 37 million Americans age 65 and over who receive a Social Security check depend on it for at least 50 percent of their total income, and one in three beneficiaries rely on it for 90 percent or more of their total income, the Senior Citizens League reports.

If your mother wants to go back to work, there is one company that values and regularly hires older adults. Home Instead Senior Care® likes to employ seniors because they relate so well to others their age. If your mother is a good fit, she would be fully trained by her local Home Instead Senior Care office. Encourage her to check it out, and locate an office near her. Work schedules are part time and flexible.

Get helpful tips and articles like these delivered to your email.

Share your thoughts, stories and comments:

Your email address will not be published. Required fields are marked *


http://www.caregiverstress.com/elder-financial/helping-seniors-finances/older-adults-face-declining-buying-power/