Despite receiving the largest annual increases in their Social Security checks in recent history, many senior citizens continue to grapple with the financial burden of inflation. The Senior Citizens League, a nonpartisan public education and advocacy group, reports that many seniors are being forced to dip into their emergency savings, accrue credit card debt, or seek assistance programs to cope with the high costs of living.
Senior citizens are particularly vulnerable to the effects of inflation due to their reliance on fixed incomes. According to the Social Security Administration, 42% of elderly women and 37% of elderly men depend on Social Security for at least half of their income. This financial strain could potentially influence the political leanings of this key voting group, potentially undermining support for President Joe Biden.
Recent polls indicate a general disapproval of Biden’s handling of the economy compared to his presumptive November election rival, former President Donald Trump, who presided over a period of lower inflation. The high costs of living persist for seniors, despite annual cost-of-living adjustments based on inflation. Advocates argue that these increases fail to keep pace with the rising expenses faced by seniors.
Indeed, inflation has eroded 36% of the buying power of Social Security benefits since 2000, according to a 2022 analysis by The Senior Citizens League. To maintain the same level of purchasing power as in 2000, those who retired before that year would require an additional $517 in their monthly benefits.
Despite the largest cost-of-living adjustments since the early 1980s in 2022 and 2023, many seniors report that their household costs have risen more than their benefits. The Grocery Price Index by Datasembly shows that grocery prices have surged nearly 33% since Biden took office in January 2021. This shortfall has led to an increased reliance on savings, credit cards, and assistance programs among seniors.
Shannon Benton, the league’s executive director, said, “They are suffering, literally suffering. It’s worse now because of the unrelenting inflation of the past couple of years. It’s more profound in that it’s every item.”
With inflation rates continuing to rise, seniors may face further financial strain. Prices were 3.5% higher in March than the previous year, outpacing the cost-of-living adjustment for the year. Current projections suggest that next year’s adjustment will be 3%, though this could increase if prices continue to rise.
The timing of the annual adjustment, released in mid-October, could impact Biden’s standing with senior voters, a large and reliable voting block. Biden has been appealing to this demographic by highlighting his efforts to reduce prescription drug prices and protect Social Security and Medicare. However, polls show a close split between Biden and Trump among older voters, with financial concerns potentially playing a significant role in their voting decisions.
Marty Cohen, a professor of political science at James Madison University, said, “To the degree that inflation may be hitting seniors harder, that has a potential to harm him among a group that he’s actually been doing better among than you might expect. This is a race that will come down to tens of thousands of votes in six states or so. Everything is pivotal, everything counts.”