Leelanau is known for its beautiful lakes, vineyards, orchards and high property values.
But this doesn’t mean everyone is on Easy Street.
According to the American Community Survey 2022 from the U.S. Census Bureau, more than 9,380 county residents are age 65 and older.
And of these 5.2% are living at or below the poverty level.
It’s likely seniors are feeling the inflation squeeze.
Social Security benefits have lost 20% of their buying power since 2010, according to a recent analysis by The Senior Citizens League, an advocacy group.
Those who retired that year would need a boost of $370 a month, or $4,440 a year, on average, to regain the lost value.
Put another way, every $100 a household spent in 2010 would only purchase $80 today.
Every January, Social Security recipients get an annual cost-of-living adjustment, known as a COLA, but the increases often don’t keep up with the actual rise in prices — hurting senior citizens, many of whom live on fixed incomes and depend heavily on their Social Security benefits. Eight of the last 15 adjustments have come in lower than inflation for that year.
Social Security benefits have risen by 58% between 2010 and 2024, but the cost of goods and services purchased by typical retirees jumped 73% during that time, the league said. The prices of bread and ground beef, for instance, have shot up nearly 147% and 73%, respectively, over that period.
The surge in inflation in recent years resulted in some of the largest annual adjustments since the early 1980s. Beneficiaries received hefty increases of 5.9% for 2022 and 8.7% for 2023 – but only 3.2% for this year, since inflation has cooled.
Still, over the past five years, only the 2023 adjustment has beaten the rate of inflation, the league said. The COLAs lagged inflation by as much as 1.1 percentage points the other years.
The annual adjustments are based on the percentage change in an inflation index from average for the third quarter of the current year compared to the same period in the prior year. Next year’s boost will be announced in October, but it is expected to be about 2.6% based on inflation rates through July, according to the league.
That’s not enough to keep up with many seniors’ actual expenses, especially since the shortfall accumulates when prior COLAs don’t cover price increases, said Shannon Benton, the league’s executive director.
“We’re hearing that household costs rose faster than the COLA last year, with food and housing leading the way,” she said, adding that some seniors are being forced to spend down their retirement savings at a faster rate and go into credit card debt.
The good news is that there are several options available for seniors whose revenue isn’t keeping pace with inflation.
• The Northwest Michigan Community Action Agency (NMCAA) offers a Commodity Supplemental Food Program, open to seniors aged 60 and older, based on income eligibility.
Items are distributed weekly in Lake Leelanau.
• The same agency offers Meals on Wheels, which delivers meals to seniors in their homes and at several different locations through the county. In 2023, 31,932 meals were delivered to 260 Leelanau seniors.
• NMCAA also offers eligible seniors emergency home repairs and weatherization for low income seniors.
• Leelanau Christian Neighbors offers a food pantry as well as Neighborhood Assistance Ministry to help cover unpaid household expenses. Food is distributed each Monday at LCN, 7322 E. Duck Lake Rd. in Lake Leelanau.
• Residents in the southwest part of the county visit the Empire Area Food Pantry and HelpLink from 4:30 to 5:30 p.m. Tuesdays, at Glen Lake Community Reformed Church, 4902 W. MacFarlane Rd.
• The Empire Area Emergency Fund offers residents financial assistance as well.
