Here’s What Could Impact the Size of Your 2027 Social Security COLA
In October, we will learn what the 2027 Social Security cost-of-living adjustment will be — if there’s one at all.
According to an article posted by AOL, this year’s 2.8 percent COLA marked the fifth consecutive year in which benefits climbed by at least 2.5 percent. The last time that happened was about 30 years ago.
And early indications are that next year’s COLA could be higher. An article by 24/7 Wall St. states that inflation remains high, pointing out that “shelter costs rose 3.0 percent and food climbed at a similar pace over the past 12 months.”
And the war in Iran is only fueling the inflationary situation, with oil and gas prices soaring. In March, the price at the pump surpassed $5 per gallon in some places. That translates into higher prices for food and other consumer goods.
Calls for a Better COLA Calculator
In many ways, the situation is even worse for seniors. That’s because the COLA calculator doesn’t adequately account for senior spending. Healthcare and housing tend to be the biggest expenses for older Americans, and the cost of both remains high.
This is why senior advocates, including The Seniors Trust, believe the Consumer Price Index for the Elderly (CPI-E) should be used to calculate the COLA instead of the Consumer Price Index for Wage Earners (CPI-W). This index shows how inflation actually impacts the typical retiree based on seniors’ spending habits.
We are calling on Congress to enact the Social Security Expansion Act. It calls for adopting the CPI-E as the COLA calculator, better ensuring that Social Security benefits keep pace with inflation.
Additionally, this landmark piece of legislation would also extend the solvency of the Social Security trust fund through 2096, expand Social Security benefits by about $200 a month for current and new beneficiaries, require millionaires and billionaires to pay their fair share into Social Security by lifting the wage cap, and improve the Special Minimum Benefit for Social Security recipients which would help low-income workers stay out of poverty.
Is this something you can get on board with? Join us in urging lawmakers to enact the Social Security Expansion Act. You can show your support by signing our petition.
