Since 2000, senior citizens have lost almost one-third of theirbuying power, according to the Annual Survey of Senior Costs,released recently by TheSenior Citizens League (TSCL), one of the nation's largestnonpartisan senior advocacy groups.

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Typically, seniors receive a small Cost of Living Adjustment(COLA) every year in their Social Security checks to help matchinflation costs. But since 2000, the COLA has only increased 31percent, while the actual cost of living for seniors has increased73 percent.

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And in 2011, for the second consecutive year, there was no COLA. The automatic COLA was first introduced in1975; 2010 was the first year that seniors did not receive anincrease. Seniors are forecast to receive a very small COLA nextyear.

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Despite the lack of COLA, costs are going up. The study examinedthe increase in costs of 30 key items between 2000 and 2011. Theitems chosen are typical senior living expenses. Price increasesfor 22 out of the 30 costs exceeded the COLA.

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The following table shows how various types of expenses havechanged since 2000. (Dollar cost changes are included if that datais available; otherwise, only the percent of change is stated.)

Category

Expense

Cost in2000

Cost in2011

PercentIncrease,2000-2011

Housing

Ownership costs

N/A

N/A

32%

Apartment rental

N/A

N/A

39%

Homeowner's insurance (annual)

$508.00

$969.00

91%

Real estate tax (annual)

$690.00

$1,275.96

85%

Heating oil (gallon)

$1.15

$3.34

190%

Natural gas (gallon)

$1.01

$2.74

171%

Electricity (per kw hr)

$.08

$.12

50%

Transportation

Gas, all grades (gallon)

$1.53

$3.53

131%

New & used vehicles

N/A

N/A

(-4%)

Oil change

$23.11

$49.68

115%

Maintenance/ repair

N/A

N/A

44%

Medical

Total out-of-pocket medical expenses

$1,074.50

$1,526.18

42%

Prescription drugs, generic, brand, special

$623.70

$708.07

14%

Dental, general visits

$377.40

$528.61

40%

Medicare Part B premiums (monthly)

$45.50

$115.40

154%

Medicare Part D premiums

$25.93

$40.72

57% (since 2006)

Food

10 lbs. potatoes

$2.98

$5.98

101%

1 lb. butter

$2.52

$3.42

36%

Milk (gallon)

$2.78

$3.30

19%

Eggs (dozen)

$0.93

$1.81

95%

Ground chuck (lb.)

$1.90

$2.99

57%

Bread, white loaf

$.91

$1.40

54%

1 lb. coffee

$3.54

$4.42

25%

Oranges (lb.)

$.61

$1.05

72%

Recreation

Recreation, misc.

N/A

N/A

10%

Communication

First class postage

$.33

$.44

33%

Basic phone service, local

$55.37

$68.41

24%

Apparel

Clothing

N/A

N/A

(-8%)

Other

Personal care products

N/A

N/A

5%

Personal care services

N/A

N/A

32%

"For many years, seniors have watched helplessly as the value oftheir benefits has eroded. Those losses have added up, and millionsof seniors – among our most vulnerable citizens – are barely ableto scrape by today," said Larry Hyland, chairman of The SeniorCitizens League in a statement. "To put it in perspective, forevery $100 worth of expenses seniors could afford in 2000, they canafford just $68 today."

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A senior with an average Social Security benefit in 2000 received $816 per month, afigure that rose to $1,072.30 by 2011. However, that senior wouldrequire a Social Security benefit of $1,414.70 per month in 2011just to maintain the same lifestyle he or she had in 2000.

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A majority of the 37 million Americans aged 65 and over whoreceive a Social Security check depend on it for at least 50 percent of their total income, andone in three beneficiaries rely on it for 90 percent or more oftheir total income.

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To help increase buying power, The Senior Citizens League islobbying for a change in which Consumer Price Index (CPI) is usedto determine the COLA. The government currently calculates the COLAbased on the CPI for Urban Wage Earners and Clerical Workers(CPI-W), a slow-rising index that tracks the spending habits ofyounger workers who don't spend as much of their income on healthcare.

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