For cash-poor senior citizens, the government has given them another blow to their financial situation, although for those who own a house, a reverse mortgage could be a remedy.
The Social Security Administration has declared a zero percent cost of living adjustment to benefits for 2011, which one senior citizen advocacy group declares presents a daunting challenge for those older adults struggling to make ends meet.
The reason for no COLA next year is that the formula used to calculate automatic adjustments to Social Security benefits did not increase because of the recession.
The National Council on Aging cited a Carsey Institute study showing a greater percentage of older Americans staying in the workforce longer.
As for those already retired, approximately one-third relies on Social Security for more than 90% of their income. Data shows that in 2009, 10% of adults 65 or older lived at or below the poverty level, and three in 10 were considered economically insecure because they were living at or below twice the poverty level.
Another factor that will hurt senior income is that Medicare Part B premiums are scheduled to increase even though Social Security benefits are not scheduled to.
NCOA says it offers a variety of programs to help older adults build financial stability.
