That’s why increasing the cost-of-living adjustment is so important.
RPEA IN THE NEWS: NYS retirees should not struggle to afford the basics.
RPEA is proud to share that our recent op-ed was published in the Times Union, highlighting why public-sector retirees urgently need a meaningful cost-of-living adjustment.
With rising prices on essentials like food, utilities and health care, retirees living on fixed pensions are feeling the squeeze more than ever. Our message is simple: New York must do more to ensure retirees can keep up with the real cost of daily life.
RPEA Executive Director Tom Tatun writes:
“Someone turning 70 this year has lived through a lifetime of economic change, from the oil embargo and inflation of the 1970s to recessions in the 1980s and 1990s, the market crash of the early 2000s, and the Great Recession of 2008. They worked, raised families, paid taxes and served their communities through it all. Now, many are retired and struggling to make ends meet.
Today’s affordability crisis hits those living on fixed incomes the hardest. Grocery bills are up. Health care costs keep climbing. Utility rates are up and slated to increase again. At the same time, funding for key senior support programs remains unpredictable, leaving many older New Yorkers wondering whether the help they count on will still be there.
The Retired Public Employees Association represents the interests of nearly 500,000 state and local government retirees, people who dedicated their careers to serving New Yorkers. Most live on modest pensions averaging less than $28,000 a year. For them, the cost of living is not an abstract policy debate. It is a daily struggle.
The New York Health Foundation reports that more than one in 10 households struggled to access enough food in 2024, higher than early pandemic levels. Many older New Yorkers say affordable, nutritious options are increasingly out of reach. In the Capital Region, data from the U.S. Department of Agriculture and U.S. Census Bureau show grocery prices have climbed roughly 20% since 2020. A Siena College Research Institute poll from 2024 found that 81% of Capital Region households reported paying more for groceries than two years earlier.
Health care costs tell a similar story. Albany County’s 2023 Community Assessment Survey for Older Adults found that nearly one in three older adults had trouble affording necessary medications or health care services. A statewide survey by the Healthcare Value Hub and the Community Service Society of New York found that 68% of New Yorkers experienced at least one health care affordability burden in the past year, and 80% worry about affording care in the future.
Rising utility costs add another strain. Under a plan recently approved by the state Public Service Commission, household energy costs in the Capital Region will rise by an average of $22 per month over the next few years. Within National Grid’s upstate service area, about 15% of residential customers are already two months or more behind on their bills, with an average debt of $1,620 per household.
Programs like the Home Energy Assistance Program, the Supplemental Nutrition Assistance Program and utility affordability initiatives are necessary, but when essential programs face cuts or delays, the risk grows that some people will simply go without. The programs can also be complicated and can leave many older adults behind. Policymakers should focus on keeping support stable and predictable, so retirees and fixed-income households are not left vulnerable when there are budget fights in Washington or Albany.
True stability comes from knowing the support you rely on will keep pace with the cost of living. That’s why the Retired Public Employees Association is urging lawmakers to strengthen the state’s pension cost-of-living adjustment.
Over the past 25 years, the Consumer Price Index has increased a cumulative 87%, but the COLA for retirees has not met even the current 3% threshold, except in 2022 when the inflation rate was 9%. We support legislation (S.8160) that includes a “catch-up” provision to account for rising costs and raises the earnings threshold for working retirees from $18,000 to $21,000. These changes would be a significant step in the right direction and ensure that pensions reflect today’s economic reality.
No one should have to choose between paying for groceries or prescriptions, between heating a home or keeping the lights on. New York’s public service retirees spent their lives dedicated to our communities. They shouldn’t have to struggle to afford the basics.”
You can also read the article on the Times Union website by clicking here.