“While the just-announced Social Security COLA of 3.6% will provide some relief from rampant inflation, it won’t be enough for most seniors to even tread water financially. As is the case every year, some of the COLA will be offset by 2027 Medicare Part B and Part D premium increases, which have yet to be announced. But the fundamental problem is that the COLA is based on an index (the CPI-W) that does not account for the inflationary impact on seniors’ true expenses, especially health care costs – which are rising faster than the general inflation rate. We favor the adoption of the CPI-E (Consumer Price Index for the Elderly) which tracks the costs of goods and services vital to seniors, to ensure that they can continue to meet the true cost of living. We have endorsed legislation, including Senator Bernie Sanders’ Social Security Expansion Act and Rep. John Larson’s Social Security 2100 Act, which would make the CPI-E the official inflation measure for Social Security — and boost annual COLAs.
We have heard from far too many seniors that current COLAs are inadequate, leaving them scraping every penny to get by. Some 75% of older adults say a Social Security COLA of this amount is not enough to keep up with rising living costs.* The statistics back this up. Social Security benefits have lost 13% of their buying power over the past decade, according to a recent analysis.**
We have been beating this drum for years. How much longer will Congress wait to give retirees adequate COLAs? We must ensure that annual inflation adjustments meet the fundamental promise of the program: that seniors can retire with dignity and true financial security.” – Max Richtman, President & CEO, National Committee to Preserve Social Security and Medicare
* https://www.aarp.org/pri/topics/work-finances-retirement/social-security/social-security-cola-2027/
** https://seniorsleague.org/cola-watch/
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Walter Gottlieb
Director of Communications
