Lawmakers Look for Ways to Help Social Security Better Keep Up with Inflation

Inflation has hit everyone hard, especially retirees living on a fixed income. As Kiplinger reports, some lawmakers are now looking for ways to help financially strapped seniors by changing how the Social Security annual cost-of-living adjustment (COLA) is calculated.

The Boosting Benefits and COLAs for Seniors Act would “protect and expand benefits for older adults who rely on them” by making significant changes to the COLA calculation. Right now, the COLA is based on the Consumer Price Index for Urban Wage Earners (CPI-W), which reflects the cost of everyday expenses such as food, housing, transportation, consumer goods, etc. The new bill calls for using the Consumer Price Index for Americans aged 62 or older (CPI-E), as this price index reflects the costs incurred by older adults, such as health care, more accurately.

The Social Security Expansion Act also calls for using the CPI-E as the COLA calculator. The Seniors Trust believes this bill is a better choice because it does more to protect the financial futures of America’s retirees. This landmark piece of legislation will increase benefits for most recipients by about $200 per month, increase minimum Social Security benefits to provide higher payments to seniors and greatly reduce senior poverty, and guarantee the long-term solvency of the Social Security program.