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Seniors and Inflation
Inflation Challenges Persist
How some Charlotte-area retirees are making ends meet
By Valerie Hubbard
As we begin this New Year with resolutions, hopes and dreams for personal progress, and achievements, many retirees, seniors and others nearing retirement are just hoping they can stay afloat. Many of those living on fixed incomes, who are still reeling from the devastating blows of last spring’s unprecedented 40-year high inflation rate of 8.6 percent in the U.S., are especially hard hit.
Although the U.S. annual inflation rate had decreased slightly to 7.7 percent by November, a U.S. Inflation Calculator online report showed the following cumulative impact of inflation on some of our daily living expenses through October 2022.
Based on the October consumer price index (CPI) from the Bureau of Labor Statistics, the U.S. Inflation Calculator stated that: • Shelter or housing costs rose 4.7 percent, the largest 12-month increase since
May 1991 • Food prices increased 7.9 percent, the biggest annual increase since July 1981, with the cost of groceries rising 8.6 percent and the price of eating out 6.8 higher • Automobile gasoline/fuel prices jumped 38 percent from a year earlier, and • Energy utilities, which combined items like gas, electricity and oil prices jumped up 25.6 percent
To help ease the bite of ongoing inflation, last year the Social Security Administration announced an 8.7 percent cost of living adjustment (COLA) increase in 2023’s monthly Social Security benefit payments.
A study by the Center on Poverty and Social Policy at Columbia University said, “About 50 percent of seniors rely on Social Security for the majority of their income,” especially those on fixed incomes.
So for many Charlotte-area retirees like Anne, whose only source of income is her monthly Social Security payment of approximately $1,200, the COLA increase will be a blessing, especially since her total monthly living expenses often
equaled or exceeded her previous Social Security amount.
Plus, her bills keep growing because of inflation and the frequently escalating cost of medication, utilities, gasoline, unexpected car repairs and maintenance for her recently purchased 20-year-old vehicle. Due to a new health challenge, she also now needs more medication and currently doesn’t drive as frequently.
“So I’m debating if it would be more economical for me to let go of my automobile to save on gas, auto insurance and car repairs,” said Anne, who is in her mid-70s. “But then, I’ll have to depend more on Uber, Lyft or other people and pay them for gas, etc. — which ultimately might be even more expensive.”
Meanwhile, to help keep her transportation and other costs down, she said, “I just fill my gas tank up completely once a month, then fill up again when it gets down to a quarter tank.”
This year’s COLA increase was also established to help offset last year’s rise in cost of the standard Medicare Part B premiums which climbed from approximately $148 per month to $170.
So beginning this month, the average individual Social Security recipients should get an increased payment of approximately $146 per month, and married couples filing jointly will receive about $240 more each month.
Certainly, other retirees, like Norma and Ernest, a retired couple in their mid-70s, will gladly welcome the 2023 Social Security COLA increase.
It will definitely help pay their biggest monthly expense — rent for their onebedroom market-rate apartment in Matthews — which they have lived in over 10 years. But since inflation began it is now over $1,400 per month. Fortunately, that cost also includes a few of their utilities such as gas, water, etc.
After working for George Washington University for nearly 40 years, Norma retired in 2007, with a small annual retirement check. But that retirement fund ran out two years ago. She continues to receive a monthly Social Security check. “But since I stopped getting a retirement check in 2020, that has become a problem, because I run out of money before the end of the month,” Norma explained.
Although Norma’s partner Ernest pays most of the bills, buys the groceries and does “all of the cooking because he likes to,” Norma said, his retirement income, though still limited and fixed, is a bit higher than hers. He’s also a gracious provider, she added. “But I’ve always been a selfsupporting person, so I like having my own money to take care of my bills too.”
She added, “Plus, I’m a diabetic with other health issues. So I take five to six types of medicines.” Before she switched her Medicare insurance plan in November 2021 from AARP to an AARP Advantage plan, she was paying nearly $300 per month for Medicare and her medicine.
“God has blessed me, because paying for medicine is one of the things that was keeping me without money before the end of each month,” Norma continued. Now, she doesn’t pay for any of my medications out of pocket.
“This change has been one of the greatest things that has helped me survive during inflation, because it has helped reduce my medication expense greatly,” she said. “Medication is expensive, and I really don’t know how anyone that’s taking medicine right now and has to pay for it themselves, can afford it. I think that a lot of people can’t afford it, so they just don’t take it!” said Norma.
“Since inflation began, we now spend about $350 per month on groceries, compared to about $275 before inflation.
Ernest, Norma and Norma’s granddaughter Kayleigh
However, we still have to eat!” Ernest said. “I do the grocery shopping and the cooking, which is relaxing for me. We also don’t go out to eat a lot,” he added. “We eat at home instead. Plus, we have leftovers for another day or so.”
“We look at and prioritize expenses… But there are some basic things such as rent, utilities, food, that [we must have]!”
Carol, another retiree, said she sells items that she doesn’t need on eBay, Facebook Marketplace and other websites.
“My son lives with me and helps pay my mortgage,” Carol said. “We also combined our cell phone plans to reduce monthly expenses and cut cable and now stream all TV.”
“I take advantage of most senior discounts offered and credit card programs offering rebates and points when we go to purchase items and economize in almost every way we can,” she continued. “I also often, when eating out, take home half of my meal for leftovers the next day — it cuts the expense in half versus having to cut out socializing all together.”
She added, “I’m always looking for ways to decrease monthly costs as my deficit [coverage] comes from savings, which is a limited resource.” P
