The Catastrophe Facing Low Income Older People
Disclaimer: Views and opinions expressed in Bob’s Blog are solely those of the author and do not purport to reflect the views and opinions of the CAC Office on Aging or its staff. Posted August 27, 2025
Almost every January, there is an increase in the monthly Social Security benefits recipients receive. It is supposed to help their monthly income keep pace with inflation. Recipients are not supposed to fall behind and be able to purchase as much with their monthly benefit before the prices of those increased.
How is The Amount of The Increase Determined?
(I am going to get technical now. So please don’t zone out and stop reading.)
Each October the Social Security Administration compares the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July, August and September of the current year to that of the previous year. If that has increased, each recipient’s monthly benefit will increase by that percentage in January of the following year.
This index is published on a monthly basis. Typically, there is no large difference in the index in July, August and September from what it had been in April, May and June.
In 2025, the index for April, May and June is showing a 2.7% increase. It looks like the increase for July, August and September will be the same.
Probably the monthly increase in Social Security benefits in January of 2026 will be 2.7%.
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) Not a Reliable Measure of the True Rise in Costs
Over the years, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) has not been a reliable picture of the actual increases in the monthly costs for people receiving Social Security.
On August 12 of 2025, CBS MoneyWatch published an article, “CPI rose in July by 2.7% on an annual basis. Here’s what that means.”
This article showed the increase in grocery prices since 2019.Here are the products selected and the changes in in their cost.
| Item | 2025 | 2019 | Increase |
| Eggs | $ 5.12 | $ 1.46 | 251% |
| Sugar | $ 1.02 | $ 0.59 | 73% |
| Ground Beef | $ 5.80 | $ 3.78 | 53% |
| White Bread | $ 1.91 | $ 1.29 | 48% |
| Steak | $ 8.63 | $ 5.86 | 47% |
| Round Roast | $ 7.62 | $ 5.26 | 45% |
| Wheat Bread | $ 2.75 | $ 1.95 | 41% |
| Yogurt – 8 oz | $ 1.54 | $ 1.09 | 41% |
| Chicken Breast | $ 4.18 | $ 3.01 | 39% |
| Milk – Half Gal | $ 4.07 | $ 2.98 | 37% |
| Soft Drink – 2 Liter | $ 2.10 | $ 1.54 | 36% |
| Stewing Beef | $ 7.73 | $ 5.79 | 34% |
| Rice | $ 1.03 | $ 0.77 | 34% |
| Boneless Ham | $ 5.47 | $ 4.26 | 28% |
| Ice Cream (Half Gal) | $ 6.23 | $ 4.82 | 29% |
| Potatoes | $ 0.97 | $ 0.75 | 29% |
| Flour | $ 0.56 | $ 0.43 | 30% |
| Malt Beverages | $ 1.83 | $ 1.44 | 27% |
| Pork Chops | $ 4.24 | $ 3.35 | 27% |
| Processed American Cheese | $ 4.99 | $ 3.93 | 27% |
| Total | $ 77.79 | $ 54.35 | 43% |
The article also showed the increase in utility costs:
| Item | 2025 | 2019 | Increase |
| Home Gas | $ 1.63 | $ 1.02 | 60% |
| Electricity (Kwh) | $ 0.18 | $ 0.14 | 29% |
| Total | $ 1.81 | $ 1.16 | 56% |
As you can see, the cost of groceries increased by 43% from 2019 to 2025. The cost of utilities increased by 56% during the same period.
Here in Knoxville and Knox County, monthly rent on apartments has increased dramatically since 2019.Unfortunately, records were not kept on the average cost of rents for 1 and 2 bedroom apartments in Knoxville and Knox County in 2019.
- A Tennessee Housing Development Agency report from 2019 stated the average rent for an apartment in the Knoxville metropolitan area was approximately $759.
- According to Gemini AI, median monthly rent for Knox County in 2017 was $880.
Gemini AI reports rents for one-bedroom apartments average between $1,307 to $1,555 per month and for two-bedroom apartments they average between $1,552 to $1,809 per month in 2025.
Cost of Living Increases in the Monthly Social Security Benefit From 2019 to 2025
The average monthly Social Security Benefit in 2019 was $1,502.85. The annual Cost of Living Adjustments in Social Security Benefits from 2020 to 2025 were:
COLA
Year Adjustment
2020 1.6%
2021 1.3%
2022 5.9%
2023 8.7%
2024 3.2%
2025 2.5%
When you apply the COLA each year to the average monthly Social Security Benefit rose from $1,502.85 to $1,878.40 in 2025. That was an increase of 25% ($1,878.40/$1,502.85 minus 1.00).
Many low income people have no pension or other savings to help out with their expenses. They only have their monthly Social Security check to pay for their expenses.
The Increases in the Monthly Social Security Benefit Has Not Matched the Increased Cost of Housing and Groceries
The Monthly Social Security benefit has increased 25% since 2019. During the same period, the cost of groceries has increased 43%. The costs of utilities have increased by 56%. The increase in monthly rents has been higher.
Normally when lower income people can no longer afford to pay the higher rent at their apartment, they are forced to move into one where the rent is lower.
Right now there are not that many apartment complexes or privately owned apartments with rent people with low incomes can afford.
Locally the Knoxville’s Community Development Corporation (KCDC) is the public agency responsible for administering affordable public housing and rental assistance programs for low income people. It has done this since 1936. Over the years KCDC has been a real asset to the city and the county.
It offers housing to people with low incomes two ways:
- It owns its own public housing complexes.
- It also contracts with private owners of apartment complexes and homes to provide rental units for low income people.
KCDC controls the monthly rent the person has to pay. For those living in apartment complexes and homes it does not own, it negotiates the rents that will be paid. The resident pays a portion of this and KCDC pays the rest. The Federal Government pays most of KCDC’s portion.
As the rents for apartments started to increase years ago, KCDC could not match the rents the owners could get by renting their units on their own. Owners started terminating their contracts with KCDC. The number of rental units KCDC had available dwindled.
As rents in Knoxville and Knox County have increased in the last few years, many low income people had to start looking for apartments they could afford.
Since the main source for these is KCDC, there has been a greater demand for the apartments in their public housing complexes. While there were waiting lists in the past, now these are much longer. The amount of time people can be on a waiting list at a specific complex can vary. In the summer of 2025,
- .The shortest waiting time is 3 to 6 months at Cagle Terrace.
- At the Verandas at Flenniken, it is 3 months to 1 year.
- It is 5 months at 2 others.
- And the rest, it is 1 to 2 years.
KCDC is also the primary agency that administers the federal government’s Section 8 Housing Choice Voucher program. For quite a while the waiting list has been 12 to 36 months. In the summer of 205, they are not accepting new applications. They won’t start again until there is a drop in the time on these lists.
The Predicament Low Income People Face
When the management company of an apartment complex or the owner of a rental unit increases the monthly rent, the renter normally has 60 days to find an apartment at a lower rent.
Most frequently the only option for an older low income person may be KCDC housing. Unfortunately, KCDC has no units at present where the waiting list is less than 3 months.
The person is in a quandary. What are they supposed to do?
Currently if a person does not move out at the end of lease, they are facing eviction. Evictions are listed on the person’s credit report and their credit score drops. If they have to borrow money in the future, the interest rate they pay will be higher.
The Increases in Grocery and Utility Prices Have Also Caused Challenges
Older people with low incomes have to look deeper and deeper to make cuts to survive. Unfortunately, there are fewer and fewer of these.
For quite a while, we have heard about older people cutting the pills they take for their medical conditions in half to make them last longer. That’s just a small part of the problem. How many are they are not going to their doctors regularly because they can’t afford it?
At Any Given Point, They Are Only One Step Away From Catastrophe
They hope it never happens but the fear is always in the back of their minds. How do they handle the unexpected?
- If they have a stroke, heart attack or are diagnosed with cancer, how do they cover the cost?
- If their car breaks down, how do they get it repaired?
- If there is a fire or a storm and they lose all of their furniture, what do they do?
This is not the type of life we want our parents to have. We also don’t want older low income people to.
Under the One Big Beautiful bill passed by congress in 2025, major cuts were made to various programs that have helped low income people.
One of these is the Supplemental Nutrition Assistance Program (SNAP). This is the old Food Stamps program. Monthly amounts will be lowered. Some people currently receiving benefits will lose them.
Many older people supplement the food they’re able to buy with food they get from a local food pantry. The main supplier of this food is Second Harvest. In April of 2025, they announced they were facing food shortages because of federal funding cuts.
There are other cuts in federal funding coming. The amounts have not been announced yet.
Your Help Is Needed
Tennessee is known as the Volunteer state. We have always been known to help people in need. These older people relying totally on their monthly Social Security benefit to survive need our help.
You might be saying. I am only one person can’t be of much help. That is not correct.
If you can, buy a little extra at the grocery store and give it to a food pantry. You can also make a cash donation to a food pantry.
See if your church is helping older people. You may be able to help them with what they are doing. You can also make a donation for that.
Volunteer regularly at the Office on Aging or at any organization or non-profit that serves low income older people.
If you know of an older person in your neighborhood who is struggling, give them a gift card for food. Do this anonymously. You might even want to take them out to lunch.
They might need help in getting to and from the grocery store, a food pantry, their doctor’s office or a hospital or other place for tests. Offer to take them.
Do they have a pet? Help them with it.
Email, write or call Congressman Burchett, Senator Blackburn and Senator Hagerty. Let them know how the annual Cost of Living Adjustments in a person’s Social Security benefits have not kept pace with the increases in charges for living expenses. Request that they work to change this.
Let everyone locally know that there is a need for more low income housing. Low income housing is being built. However, much more is needed. Let local government officials, real estate developers, non-profits and private businesses know they need to step up and address this problem.
We can no longer allow our older people who rely on Social Security alone to cover all of their expenses struggle to survive. If we work together, we can make a difference.
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If you have any comments on what you have read in this post, please email them to me. Also – if you have any ideas about subjects you would like to see discussed in future posts, please send me an email and let me know. My email address is bob.ooablog@gmail.com