Social Security Relief Payment Critical to West Virginians

A payment of $250 to Social Security recipients, who won’t be receiving a cost of living adjustment (COLA) in 2010, could mean the difference between life and death for thousands of West Virginians.

Gaylene Miller, the state director for AARP West Virginia, said the membership organization for people 50 and older applauds a proposal to provide relief payments to Social Security recipients in lieu of a COLA. She said the extra cash is especially critical in West Virginia.

“More than a quarter of older West Virginians rely on Social Security as their only source of income,” Miller said. “It makes up at least half the income for six in 10 West Virginians age 65 and older.”

West Virginia is among the nation’s poorest states. With an average personal income of $38,000 (in 2009), the state’s per capita income ranks among the nation’s lowest.

“The financial security of 41 million older Americans – including more than 400,000 West Virginians – depends on Social Security – the guaranteed benefit they worked all their lives to receive,” Miller said. “Unfortunately, our nations’ economic crisis will deny Social Security recipients next year’s cost of living adjustment – an increase they count on to help make ends meet.

“We urge Congress to pass legislation quickly to provide needed assistance for millions of older Americans whose benefits will be frozen next year,” she said. “Unless Congress provides older Americans with this relief, millions will be unable to afford skyrocketing health care and prescription drug costs.”

The Social Security Administration announced in mid-October that there would be no COLA in 2010. This is the first time Social Security recipients will not receive an automatic cost of living adjustment since the COLA was introduced in 1975.

“The cost of living adjustment is often the only protection against inflation for people who depend on the program as the bedrock of their financial security,” Miller said. “Although the lack of a COLA was triggered by low overall inflation, the cost of the things seniors depend on most – especially health care and prescription drugs—have continued to rise well above inflation.”

Older Americans do not feel the effects of low inflation in their pocketbooks because one of their largest expenses is health care. On average, seniors spend $4,400 out of pocket for health care per year.

Protecting Social Security income is a top priority for AARP. Miller said the association has actively reached out to Congress to stress the unique and difficult financial pressures older Americans face and to discuss legislative solutions that have been proposed by members of Congress from both sides of the aisle.