A Renewed Call for an Updated COLA Calculator
The Social Security cost-of-living-adjustment (COLA) was created to help seniors and others receiving Social Security benefits keep up with inflation. The problem is it simply can’t keep pace. This year, Social Security recipients received a modest 2.5 percent COLA increase. That equates to an extra $48 per pay period on average. It’s easy to see why so many seniors are struggling.
New COLA Calculator
An article by 24/7 Wall Street says it’s time Congress consider adopting a better formula for calculating COLA.
Social Security COLAs are based on third quarter changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This formula does a disservice to seniors. That’s because the index that tracks the costs of workers and people living in urban areas doesn’t capture the costs that retirees commonly face.
The article suggests a better solution would be to calculate COLAs based on a senior-specific index. The Consumer Price Index for Americans 62 years of age and older (CPI-E) more accurately reflects the costs incurred by older adults, especially related to healthcare and housing. Senior advocates such as The Seniors Trust wholeheartedly agree.
Landmark Legislation
The Social Security Expansion Act calls for adopting the CPI-E.
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 Congress to enact the Social Security Expansion Act. You can show your support by signing our petition.
