Social Security benefit payments reach more than 55 million retirees ages 65 and older. If not for Social Security, more than 37% of older adults would live below the official poverty line, according to the Center on Budget and Policy Priorities. But even with Social Security benefits, about 10% of older adults still live in poverty.
A long-time community activist, James Chavis is helping set up for a community meeting for one of the local Durham, North Carolina, chapters of Partners Against Crime. He went on Social Security disability in 1998 after he had hip surgery. Now 71, he still uses a cane and lives off the retirement income benefit. His monthly check barely covers the bills, especially the high cost of doctor visits.
“No, it’s not enough,” he said. “And don’t go into the hospital, you will get a bill — and that is not a little bill.”
Chavis gets about $1,200 a month from Social Security. There’s no room for anything superfluous or fun. “It’s nothing fun to spend your money on when you ain’t got none to spend on when you got to watch every penny,” he said.
Chavis said he himself is an example of someone living paycheck to paycheck. “Folks on Social Security that do not have another income live from check to check, and they cannot splurge like other folks.”
Social Security payments adjust every year based on inflation. Next year’s cost-of-living increase will be 2.8%, and it goes into effect in January. Thanks to high housing costs in Durham, the boost — while welcome — will allow Chavis to tread financial water at best. He’ll have to save at least some of his January increase.
“You’ve got to start in January making sure you put aside some money to start for that increase in rent,” he said.
Chavis recognizes the value of Social Security. When he meets younger adults while volunteering, he tells them they need to pay into the system so that they’ll have an income when they retire. He also tells them they should be grateful that President Franklin D. Roosevelt signed Social Security into law back in 1935. “Because that money comes out before you even touch it, and they should look at it as a great thing that they started back there then,” he said.
For millions of retirees since then, Social Security income is critical.