Social Security recipients worried over future

With no Social Security cost of living adjustment for the next two years, some Green Valley seniors and social service agencies will see tougher times ahead.

For many, it’s just a continuation of what they’ve been experiencing already.

Recipients have received the COLA every year since automatic increases were adopted in 1975. About 50 million retired and disabled Americans receive Social Security benefits, with an average monthly benefit for retirees of $1,153. The lack of a Social Security increase would be a dramatic change for recipients, who received a 5.8 percent increase in January — the largest since 1982 — along with a $250 economic stimulus check.

Many residents say they are annoyed but won’t be seriously affected. But not all are so lucky.

“We are certainly aware that Social Security payments are probably not going up, but our residents are more concerned about Medicare costs,” said Anndi Meneely, site manager at Del Coronado retirement apartments in Green Valley, which charge according to income and cater to low-income seniors and the disabled. “It’s definitely the health costs that have them worried.”

By law, Social Security benefits cannot go down. Nevertheless, monthly payments would drop for millions of people in the Medicare prescription drug program because the premiums, which often are deducted from Social Security payments, are scheduled to go up slightly.

Del Coronado resident Lester Herrud says he and his neighbors are concerned.

“A lot of people live on their Social Security month-to-month, and if they don’t get a raise, it’s going to hurt,” he said.

Margaret Brinkmeyer, who relies on her monthly check, says the COLA should go up with rising prices spurred by the troubled economy. However, cost of living adjustments are pegged to inflation, which has been negative this year, largely because energy prices are below 2008 levels.

GETTING HELP

Meneely said that Green Valley Assistance Services and Pima Council on Aging have been supportive of Del Coronado.

“They come in and out of here to help the residents in many ways, answering questions and giving them outside sources and help,” Meneely said. “These outside groups relieve some of the residents’ worries.”

GVAS Executive Director Chris Kang said more and more social service agencies have begun partnering to handle caseloads.

“People on fixed incomes are struggling each month,” said Kang, noting that families from Sahuarita and single seniors are asking for more help.

She said there still are many areas where GVAS can help such as budgeting assistance.

“It’s the unexpected bills like medical emergencies and even car repairs that are eating up what little savings, if any, that they have,” Kang said. “We had to send nearly 75 households to other agencies in July alone because we had no money to help them through our rent and utilities program, where in the past we could pay a few bills and ease their stress. The money just isn’t there.”

Joyce Herron, CEO and manager of Carivaca Estates in Arivaca, says news of no COLA increase is just the latest in an avalanche of setbacks assisted-living facilities are facing.

Herron, a registered nurse, says assisted-living facilities all over Arizona are seeing fewer admissions because family members no longer have the money to pay for long-term care and are having a hard time getting help from state programs. Some have lost their jobs and now have the time to take care of elderly parents themselves.

Carivaca Estates, founded in 2003, is a non-profit, 10-bed care facility run out a private residence on 20 acres of land off Universal Ranch Road. They accept private-pay residents along with those covered through the Arizona Long Term Care Services program, which is run by the state and suffering from federal funding cuts, she says.

Some residents — mostly in their 80s and 90s and many who suffer from dementia — rely on their families to pay the $2,500 to $3,500 per month for 24-hour care. Children of residents are usually at retirement age, and economic pressures affect their ability to fund their parents’ care.

“As (the family’s) money goes down, our money goes down,” said Herron. “But our expenses keep going up.”

Carivaca has seen fewer admissions in the past year, with only four residents at one point. Currently, the facility has seven residents; two who are private pay, though family members told her “money is drying up”; five receive state help.

Herron says she was forced to drain $30,000 from her savings account and cut staff hours this year just to keep open. She relies on grant money and small fundraisers, though events that drew in close to $1,000 in past years brought in $300 to $400 this year, she said.

“It’s a scary trend we’re coming into, and if it doesn’t change soon, it could put us out of business.”

MORE SEEK HELP

The Community Food Bank of Green Valley also expects to see more seniors coming in because of the Social Security situation, Executive Director Mary Jane Goodrick said. Those who had just been getting by may have to look at other options, she said.

In July 2009, the Food Bank served 2,044 people from the Green Valley/Sahuarita area, an increase of 15 percent from a year earlier. Seniors accounted for 15 percent of that.

Of the seniors who did come in this summer, a number have grown children living with them again and others are raising or helping raise their grandchildren, Goodrick said.

At Casa de Esperanza, a Green Valley-based human services organization, Executive Director Bill McCreery would love to see seniors, especially those struggling to make ends meet, take advantage of Casa’s low-cost lunch program.

Seniors ages 60 and older are welcome to have a nutritious lunch weekdays at Casa and enjoy social activities. A suggested donation of $2 per person helps fund the lunch program, McCreery said.

Regina Ford, Karen Walenga and the Associated Press contributed to this story. Reach the reporter at jrichardson@gvnews.com | 547-9726

COLA RAISES

The annual percentage increase in Social Security payments since automatic adjustments were adopted in 1975:

Year Increase

1975 8.0

1976 6.4

1977 5.9

1978 6.5

1979 9.9

1980 14.3

1981 11.2

1982 7.4

1983 (see note)

1984 3.5

1985 3.5

1986 3.1

1987 1.3

1988 4.2

1989 4.0

1990 4.7

1991 5.4

1992 3.7

1993 3.0

1994 2.6

1995 2.8

1996 2.6

1997 2.9

1998 2.1

1999 1.3

2000 2.5

2001 3.5

2002 2.6

2003 1.4

2004 2.1

2005 2.7

2006 4.1

2007 3.3

2008 2.3

2009 5.8

2010 0.0-x

2011 0.0-x

Note: Before 1983, cost of living increases were awarded in July. Starting in 1984, they have been awarded in January. The change moved 1983’s adjustment to January 1984.

x-Projected by Social Security trustees.