It’s not just older Americans who will benefit from what is expected to be the largest cost-of-living adjustment in Social Security benefits in 40 years.
WASHINGTON — 70-year-old Cassandra Gentry is looking forward to a hefty increase in the cost of living on her Social Security benefits — not for herself, but to pay for haircuts for her two grandchildren and put food on the table.
The three live in a Washington apartment building that houses 50 “extended families” — where grandparents look after children whose parents aren’t home.
Gentry, who has taken in her grandchildren to keep them in a safe environment, says the increase in benefits will help her make ends meet. “When I was working, I never thought about making contributions to social security, but now I depend on it,” said the communications pensioner. “I depend on my Social Security to take care of these kids.”
What is the social security increase for 2023?
Social security cost of living adjustment, also known as COLA, for 2023 is expected to be around 9% or even higher, its highest level in 40 years, analysts estimate. That will be announced on Thursday morning.
Not only old people will benefit from this. Around 4 million children receive benefits, and countless others are also helped because they are cared for by Social Security recipients, sometimes by their grandparents.
The impact will be immense, especially for low-income retirees like Gentry, who is feeling the painful sting of high food and energy costs while caring for an adolescent 12-year-old granddaughter and 16-year-old grandson. “They eat everything,” she joked.
She said the financial boost “is going to help us, and it’s going to be an advantage because the cost of everything has gone up.”
TIED TOGETHER: By How Much Could Social Security Benefits Increase in 2023?
High inflation remains a drag on the broader economy, prompting the Federal Reserve to raise interest rates in hopes of cooling high prices.
But in many ways, inflation is hitting older Americans harder than the rest of the population. Medical costs make up a large part of the burden.
Associated with a decrease in Medicare Part B premiumWill Social Security COLA put more money into the hands of the 70 million Americans who receive benefits, including the growing number of extended families like Gentry’s. According to US censusIn 2020, approximately 2.4 million grandparents were responsible for their grandchildren.
That number has increased exponentially since the government introduced a ‘relative care’ approach to child care which focuses on keeping children in homes with their next of kin as opposed to foster families.
And while Social Security is generally viewed as a program for older Americans, it is, in turn, the nation’s largest child support program.
Since the pandemic, social security for children has become even more important as “COVID has taken a toll on many parents,” said Maya Rockeymoore Cummings, a nonresident senior fellow at Brookings Metro, which is part of the Brookings Institution, and CEO of Global Policy Solutions, a social change strategy company.
The National Institutes of Health reported this last October at least 140,000 US children under 18 had lost a parent or legal guardian due to COVID.
Cummings says she estimates the actual number is much higher. “We should understand that increasing COLA will have net positive benefits for the entire household – not just for older family members,” she said.
Gentry advocates for grandparents raising their grandchildren and the building where her family lives is stretched to capacity. She said many of the grandparents, who are African American and support each other in their close-knit community, rely solely on Social Security for their income.
A Global Policy Solutions study shows that African American children need the extra help of Social Security benefits the most.
Caregiving grandparents are 60% more likely to live in poverty than grandparents not raising grandchildren, according to to the US Office of Personnel Management.
The Child Tax Credit program, expanded during the pandemic, has helped tens of millions of children and their families and contributed to a 46% drop in child poverty since 2020, according to a September census report.
But that program is over and there are already signs of it he child poverty is increasing.
Nancy Altman, co-director of Social Security Works, an advocacy group, said, “The benefits in many other federal programs are eroding — but COLA makes Social Security unique.”
“And for the children who receive Social Security benefits,” both directly and indirectly, “low-income children benefit the most,” she said.
William Arnone, executive director of the National Academy of Social Insurance, a social security advocacy group, said while the expected COLA “is generous, it’s just a catch-up” for many older Americans, who are often more affected by the price increases caused by inflation, especially grandparents looking after grandchildren.
“All generations benefit from social security,” said Arnone.
Gentry said she hopes more extended family communities like hers will pop up across the country so residents can support one another when resources aren’t readily available.
She said she would also like to see more federal programs consider grandparents like her in policy decisions.
“I always say our grandparents are heroes because we intervened when nobody else would have,” she said. “And we did the job.”
https://www.kvue.com/article/news/nation-world/social-security-cost-of-living-increase-2023-will-help-millions-of-kids-too/507-4e03d84b-c363-4858-942a-9e91c3e677c3 Social security increase in 2023: Millions of children should also benefit