Lawmakers Propose Emergency 3% Social Security Raise
Earlier this week, the news broke that seniors on Social Security will be in line for a 1.3% cost-of-living adjustment (COLA) going into 2021. Earlier in the year, it seemed as if seniors wouldn't be eligible for a raise at all, so the fact that they're getting a bump in benefits is technically a good thing.
But a 1.3% raise is hardly much to write home about. For the typical beneficiary today, it will amount to less than $20 extra per month, and that assumes that Medicare Part B premiums will hold steady going into 2021, which is unlikely to happen. As such, a 1.3% COLA could translate into a negligible boost for seniors who are already desperate for money, especially in light of the coronavirus pandemic.
It's for this very reason that two Democratic lawmakers, Reps. Peter DeFazio of Oregon and John Larson of Connecticut, are aiming to introduce a bill to raise next year's 1.3% COLA to a 3% emergency boost instead. The bill, called the Emergency Social Security COLA for 2021 Act, is scheduled to be introduced on Friday, and if it's passed into law, it could be a huge lifeline for seniors who are currently struggling to make ends meet.
Source Fool.com
