The Senior Citizens League says that a proposed 1% cut in the cost-of-living adjustment for Social Security would cost seniors over $50,000 throughout a 25-year retirement.
The SCL, Washington, a seniors’ advocacy group, says its researchers analyzed the amount of money seniors would lose in Social Security payments over a 10-, 20-, and 25-year retirement period under three scenarios. Compiled by the Senate’s Special Committee on Aging, the scenarios involved a 1% cut, a 0.5% cut, and a “chained” COLA producing a cut of roughly 0.30%.
Over 25 years, the 1% cut would “cost” seniors $54,954, the researchers say. The half-percent cut would result in a $28,555 loss, and the chained cut, a $17,402 loss.
The losses were smaller for the shorter durations. For instance, a 1% cut over 10 years would cost seniors $8,085, according to the study.
In another analysis, League researchers say they found that seniors have lost 24% of their purchasing power since 2000.
“We recognize the need for the Social Security program to be put on more solid financial ground, but this is not the way to do it,” says Daniel O’Connell, League chairman. His organization is opposing efforts to slash the COLA, he says.
The cuts were proposed last month in a bipartisan report issued by the Senate’s Special Committee on Aging.