The American Rescue Plan provided many people with a $1,400 stimulus check in March. But, at this point, the chances of a fourth stimulus check in the near future are slim.
This is because the economy has improved dramatically in the last six months, making the case for extensive help more difficult at this time. However, while the general population may not require more stimulus payment, some proponents argue that seniors on Social Security should be an exception.
In fact, the nonpartisan Senior Citizens League is urging legislators to issue another batch of $1,400 stimulus payments to Social Security recipients. We don't know how much of a boost seniors will receive in 2022, known as a cost-of-living adjustment, or COLA.
Senior Citizens League urges lawmakers to issue $1,400 stimulus check
The reason for this is that yearly COLAs are computed using data from the Consumer Price Index for Urban Wage Earners and Clerical Workers from the third quarter (CPI-W), as per The Motley Fool via MSN.
Seniors, on the other hand, should receive official word on their 2020 COLA soon. And, regardless of how things turn up, it appears that Social Security recipients will receive their greatest boost in decades.
Experts predict that the COLA for the following year will be at least 6%, based on the data we already have from the CPI-W. Seniors, on the other hand, saw their benefits grow by only 1.3 percent by 2021.
Per AS.com, the average Social Security recipient receives payment of about $1,500 each month. While some seniors have access to a private retirement account, such as a Roth IRA, the vast majority rely on Social Security alone.
This implies that when a disaster strikes, such as a pandemic, inflation, and other economic effects can devastate their disposable income. Beneficiaries above the age of a particular age are unable to work while receiving benefits, therefore their income is set.
They may find themselves in a precarious situation if the government does not intervene. The cost of essential items has risen substantially in the previous year.
Congress remains silent about stimulus package for Social Security recipients
As the economy recovered and supply networks damaged by the pandemic were rebuilt, consumers paid higher costs across the board. The Bureau of Labor Statistics announced this month that the Consumer Price Index for the "all goods index" climbed 5.3 percent before seasonal adjustment over the previous year.
People are spending 3% more on average for food than they were a year ago, and the patterns are similar for many other items. Although a petition to support the law has garnered over a million signatures, no nationwide surveys have been undertaken to measure popular sentiment.
So far, members of Congress have been silent on whether they support or oppose a targeted stimulus package for seniors.
Some senior citizens have begun limiting their prescription medications due to dwindling funds, according to the organization. Others revealed to the group that they had "began eating only one meal every day."
The group stated that these were only a handful of the extreme actions that so many have had to take because of what inflation has done to them this year.
According to AARP and other sources, Social Security recipients will get a 6% boost in benefits next year as a cost-of-living adjustment. However, some people may face higher tax rates as a result of the increase.
The $1,400 stimulus check "may assist in defraying" those increased expenditures. According to public lobbying records gathered by ProPublica, the group has spent more than $2 million lobbying Washington lawmakers on senior concerns since 2005.