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Millions on Social Security to Receive No Increase for First Time Since 1975


Washington, DC – AARP Chief Operating Officer Tom Nelson offered the following statement in reaction to the Social Security Administration’s announcement this morning that 41 million older Americans will not receive a Social Security cost of living adjustment (COLA) in 2010. Since automatic Social Security adjustments went into effect in 1975, there has never been a year without a COLA.

“For over three decades, millions of Americans have counted on annual increases to help make ends meet. In this economy, having this protection is even more critical for the financial security of all older Americans.

“AARP applauds the President for urging Congress to extend for 2010 the $250 economic relief provided to older Americans this year. We also commend members of Congress, both Democrats and Republicans, who have sponsored legislation to provide similar relief. The 65+ population is facing extreme financial hardship; older Americans are paying more out of pocket for medical care, have experienced a real decline in their retirement accounts and in housing values, face longer periods of unemployment for those who need to work, and low returns on interest bearing accounts. Without relief, millions of older Americans will be unable to afford skyrocketing health care and prescription drug costs, as well as other basic necessities.

“Today’s news of no COLA gives Congress another reason to act quickly and pass legislation to provide needed assistance for older Americans whose benefits will be frozen next year. AARP will continue to work with members of Congress from both sides of the aisle to provide $250 in economic relief to millions of seniors who count on Social Security to pay their bills.”