Could Another Social Security COLA Be Coming?
Each year, Social Security is evaluated for a cost-of-living adjustment (COLA). This year, because of high inflation, retirees received a 5.9 percent increase. That’s the biggest benefits boost in about 40 years. The COLA equates to about $93 more each month.
The problem is, back when the COLA was set in October 2021, inflation was 5.9 percent, but today it has surpassed 7 percent. According to FingerLakes1.com, if COLA was adjusted for current inflation, retirees would see an additional $18 each month on average. However, by law there is only allowed to be one COLA increase per year. Struggling seniors will need to wait until fall to see if they will get more money for 2023.
The Seniors Trust has been calling for a fairer COLA calculator. It supports the Social Security Expansion Act which would use the Consumer Price Index for the Elderly (CPI-E) to calculate Social Security COLAs instead of the Consumer Price Index for Urban Wage Earners (CPI-W) used currently. The CPI-E takes the unique spending habits of seniors into account — particularly regarding the cost of healthcare — and offers a more realistic COLA for retirees. You can help make this happen by signing our petition to Congress.
