Why Your Golden Years Aren’t Looking So Bright
Millions of older Americans receive Social Security retirement benefits. They are supposed to provide a source of income after you no longer receive a paycheck. The amount you receive is based on an average of your income while working. To keep up with inflation, Social Security provides for an annual cost-of-living adjustment (COLA).
The problem is that the COLA is no longer keeping up with rising costs. An article by 24/7 Wall St. says “the COLA formula is failing seniors badly in 2026, and retirees are paying the price.”
Benefits are no longer providing the buying power that retirees need and deserve. It cites the Nationwide Retirement Institute’s 2025 Social Security Survey, which revealed that “over 50 percent of people who are currently collecting Social Security benefits have been forced to cut back on their living expenses because prices are going up faster than their benefits.”
COLA Formula is Faulty
The problem is that the formula to calculate the annual COLA uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), but wage earners have different spending habits than retirees. The CPI-W underestimates the amount seniors spend in categories where inflation tends to be very high, such as healthcare.
A Better COLA Calculator
Instead, senior advocates, including The Seniors Trust, believe the Consumer Price Index for the Elderly (CPI-E) should be used to calculate the COLA. 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.
