There are great risks awaiting retirees that believe their Social Security benefits will fully fund a comfortable and perhaps decades-long retirement.

It’s important to keep in mind that the recent 6 percent cost of living adjustment (COLA) will only lift monthly Social Security payments to roughly $1,657 for individuals and approximately $2,754 for couples.

That’s tough to live on in any developed country—and even more so in the United States.

Rising Medical Costs

Unfortunately, that’s not even the full story, as there are other fast-rising expenses out there that are ready to take a big bite out of government benefits. As pointed out by personal finance expert Christy Bieber at The Motley Fool, “a troubling new report shows it’s possible almost a third of your entire benefits check will be eaten up by one key expense you face as a senior—if you receive close to the average Social Security benefit.”

Citing a recent AARP report, she adds that “retirees with traditional Medicare ended up spending an average of $6,168 per year on covering the costs of insurance premiums and medical services.”

“Considering that the average Social Security benefit in 2022 is just $1,657 per month—or $19,884 per year—a retiree with a typical benefit and average medical expenses could end up spending just over 31 percent of their entire Social Security check on paying out-of-pocket expenses associated with their medical needs,” she adds.

Unsurprisingly, that massive percentage can come as a huge shock to many retirees, especially if they are dealing with any sort of financial troubles.

“Over the past twenty-one years, COLAs have raised Social Security benefits by 55 percent but housing costs rose nearly 118 percent and healthcare costs rose 145 percent over the same period,” Mary Johnson, the Social Security and Medicare policy analyst for The Senior Citizens League, claimed in a statement.

More Cash for Seniors

In light of this unsavory situation and the red-hot inflation seen all across the country, the Senior Citizens League is saying that enough is enough.

For months, the group has been campaigning via a highly popular petition to urge Congress to quickly approve a fourth round of stimulus checks that would send $1,400 direct payments to recipients of the Social Security program.

“Social Security benefits are one of the few types of income in retirement adjusted for inflation. But soaring inflation has taken a toll on household finances of retired and disabled Social Security recipients,” the petition reads.

It concludes by saying, “I strongly urge you that now is the time that you must support an emergency $1,400.00 stimulus check to Social Security recipients.”

Ethen Kim Lieser is a Washington state-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

Image: Reuters.