The District Chronicles

Issue date: 10/11/09 Section: Politics

With no Cost of Living Allowance increase this year, minority seniors stand to suffer most.

WASHINGTON (NNPA) - Black and Hispanic retirees on fixed incomes are among those hit the hardest by the economic recession due to skyrocketing health care prices and fall outs from economic setbacks. Many fear they won't be able to meet basic medical and living expenses in the future. This according to a new study released by AARP last week that highlights the impact of the economic recession on Social Security recipients.

"Of those surveyed in AARP Closer LookSM, more than a quarter (27 percent) of individuals age 45 to 64, as well as 38 percent of African Americans and nearly half (43 percent) of Hispanics, report that they still have problems paying for essential items such as food and utilities," states a release that summarizes the study. "In addition, 41 percent surveyed, including over half of African Americans (53 percent) and nearly three-fourths of Hispanics (71 percent) surveyed, were not confident that they would have enough money to cover medical and living expenses in their retirement."

And things will only get worse as those who are Social Security beneficiaries will see no cost of living increases for the first time ever, the group argues.

Data shows that medical prices have risen during 2009, and Medicare beneficiaries with higher than average health care costs are hardest hit by not having a Cost of Living Allowance increase (COLA) next year.

"Seniors face rising costs, but today have fewer resources to pay for them," John Rother, AARP's Executive Vice President for Public Policy and Strategy, said in a statement. "We urge Congress to address this issue quickly, so that seniors will not face reductions in their Social Security checks, or at least be compensated for increasing medical costs so vital to their well being."

According to AARP's "Closer Look" survey, more African-Americans and Hispanics reported having problems paying rent or mortgage and having problems paying for essential items such as food and utilities such as electricity, heat and the water.

Also, fewer African-Americans and Hispanics than Whites reported being confident in their ability to handle potential expenses related to health care.

AARP expects that, for the first time since it was established in 1975, there will not be a Social Security COLA next year. Because of COLA, Social Security checks have gone up automatically every year since 1975, according to website Factcheck.org.

Continued...

Page 1 of 2 next >

Article Tools