More than fifty-million senior citizens will not get a cost of living allowance bump to their social security checks. The move marks the second-year no COLA was given.
AARP estimates about 64% of those receiving social security rely on it as 100% of their income. The Social Security Act requires an increase in the Consumer Price Index in order for a COLA to be granted.
However, while CPI considers many factors the AARP points out seniors often face isolated areas of increased costs. That includes fluctuating medical costs and utilities. Those relying solely on social security as their income can find it difficult to meet fluctuating prescription costs or medications for new illnesses.
President Obama has proposed a $250 million special payment. That will likely be considered in 2011.