(ThyBlackMan.com) The recent news that senior citizens and others won’t be getting an increase in their Social Security checks in 2011 caused groans among all recipients. But not receiving a Social Security cost-of-living adjustment will hit African Americans and Latinos particularly hard. That’s because African Americans and Latinos rely on Social Security for a disproportionate share of their retirement income.
According to Social Security Administration data and figures from the Center on Budget and Policy Priorities, among Social Security beneficiaries aged 65 and older, 34% of African Americans and 33% of Latinos rely on 
Social Security for 90% or more of their income. Meanwhile, just 25% of Whites count on Social Security for 90% or more of their income.
Social Security is also vitally important to those with low earnings, including many blacks and Latinos, because they have fewer opportunities to save and earn pensions.
And African Americans in particular tend to benefit from Social Security in numerous ways – not just as retirement beneficiaries. For example, blacks comprise just 12% of the U.S. population, but 20% of children receiving Social Security survivor benefits are African American. Also, 17% of disabled workers receiving Social Security disability payments are African American.
Problems With the Social Security System
Social Security has been around for 75 years and has been providing inflation-adjusted increases to seniors since 1975. But Social Security is now on shaky ground. This year marked the first time since 1975 that recipients received no cost of living adjustment – despite the fact that nearly all seniors are grappling with higher bills, such as increased energy and healthcare costs.
According to the 2010 Social Security Trustee Report, the Social Security Trust Fund has just $2.6 trillion in reserves. That may sound like a lot of money, but remember that Americans are living longer than ever due to advances in medicine and technology. So lots more people are now claiming Social Security benefits for longer periods of time. Plus, with unemployment so high (the national jobless rate stands at 9.6%), billions of dollars aren’t being added to the Social Security system via payroll taxes.
The situation is so bad, in fact, that in 2010 the Social Security system will pay out more benefits than it will collect in payroll taxes. Government officials say the same thing will occur in 2011. So perhaps it’s not surprising that this year’s freeze in Social Security adjustments will be followed in 2011 by yet another delay in increases to people’s Social Security checks.
The government is doing what it can to remedy some of the ills facing the Social Security program, but it will be at least 2012 before Social Security recipients get a boost in their checks, which now average just $1,072 a month. Still, to have such news come out at a time when so many people are struggling to make ends meet is disheartening. It’s so unfortunate, not just for African Americans and Latinos, but for the 58 million recipients who count on a Social Security check each month.
Beyond the personal and financial issues surrounding Social Security, let’s not forget the political consequences at stake. Senior citizens are a huge voting block in this country. If their anger over this issue galvanizes them at the polls, Democrats could be facing an extra difficult time in November.
Do you or a family member receive Social Security benefits? If so, how will you cope with not getting an increase?
Written By Lynnette Khalfani-Cox
