The Time Has Come to Change the Social Security COLA Recipe
The Social Security Administration (SSA) announced that the cost-of-living adjustment (COLA) for 2024 will be 3.2 percent. That’s a deep cut from the record-high 8.7 percent COLA recipients received this year.
However, inflation is still high and the cost of basic consumer goods is pushing the spending limits of many Americans, especially seniors living on fixed incomes. That’s why The Seniors Trust is calling on Congress to enact the Social Security Expansion Act. This landmark piece of legislation will change the way the Social Security COLA is calculated.
New Recipe Ingredient
Right now, the Social Security COLA is calculated using the Consumer Price Index for Urban Wage Earners (CPI-W). The Social Security Expansion Act calls for adopting the Consumer Price Index for the Elderly (CPI-E). It takes the unique spending habits of seniors into account — particularly regarding the cost of healthcare — and offers a more realistic COLA for retirees.
While both the CPI-W and CPI-E measure spending, only the CPI-E looks at expenses that impact older Americans the most, namely healthcare and housing. The CPI-W tends to consider things like gasoline, education and consumer electronics that are used more by working individuals.
Join Our Cause
For the millions of seniors struggling to get by on Social Security benefits alone, next year’s 3.2 percent COLA simply is not enough. We say it’s time lawmakers take action and enact the Social Security Expansion Act. By adopting the CPI-E, seniors should receive a COLA that reflects how inflation actually impacts their unique spending habits. Retirees would also gain from its across-the-board benefits boost of about $2,400 per year. In addition, it would shore up long-term solvency ensuring that Social Security is able to pay full benefits now and in the future.
You can show your support for this landmark piece of legislation by joining The Seniors Trust in calling on Congress to enact this bill and signing our petition.
