AARP Government Relations Director David Sloane made the following statement today in response to the announcement of the 2007 Social Security Cost of Living Adjustment:
The 2007 COLA of 3.3 percent will help current beneficiaries keep up with rising costs, especially in energy and health care, and is the only lifelong hedge against inflation for most Americans in retirement today.
A secure retirement rests upon Social Security’s solid foundation, as well as additional income from pensions and savings. The fundamental value of Social Security is becoming even more critical as America's traditional pension system declines. In the long run, Social Security is likely to remain the one guaranteed benefit that keeps today's younger generations out of poverty in their retirement years. The COLA is particularly critical for the nearly one-third of beneficiaries who rely on Social Security for almost all their income. The COLA also is critical for maintaining purchasing power over time.
Americans are worried about their retirement security, and they have been clear on their support for the important role of Social Security’s guaranteed inflation-protected benefits in our retirement income framework. American voters also want their candidates to be equally clear about where they stand on Social Security. A recent AARP poll showed that seven in ten voters over age 42 say they will vote this year for a candidate who opposes private accounts carved out of Social Security. AARP has launched the "Don’t Vote" campaign, dontvote.com, that challenges Americans and tells them, "Don’t vote until you know where your candidate stands on the issues."