Come January, Social Security recipients will receive the biggest cost-of-living adjustment in almost 40 years, but many seniors maintain it’s still not enough. According to an Associated Press article printed in newspapers across the country, the 5.9% COLA increase for 2022 is due to high inflation as the economy struggles to recover from the pandemic.

Money Already Spent

According to the Social Security Administration, the COLA boost will equate to about $92 a month for the average retired worker to $1,657 each month; the average couple’s benefits will increase by about $154 to $2,753 each month.

While the almost 6% benefits boost will surely be welcome by most retirees, it’s certainly not enough to make a big difference in their lifestyle. That’s because most of that money is already spent to keep up with rising costs of food, utilities, healthcare, and other necessities.

Food prices are climbing month after month. Fortune discovered that over the past year, prices for groceries and other food prepared at home has jumped 2.6%. Medicare costs are also going up. A big chunk of the Social Security benefit boost will be eaten up by higher Medicare Part B premiums and deductibles.

According to the AP article, about half of all seniors live in a household that relies on Social Security for at least 50% of their income – and one-quarter rely on Social Security for nearly all of their earnings. While the program was never meant to be the sole means of support for America’s retirees, the truth is many seniors are dependent upon Social Security.

Time for a Change

Policymakers say COLA was designed as a safeguard to protect Social Security benefits against the loss of purchasing power in an ever-changing economy, but it’s not working as it was intended. That’s because Social Security COLA is calculated based on the Consumer Price Index for Urban Wage Earners (CPI-W). The Seniors Trust believes that needs to change. We believe the Consumer Price Index for the Elderly (CPI-E) should be used instead. The CPI-E takes the unique spending habits of seniors into account — particularly regarding the cost of healthcare — and offers a more realistic COLA for retirees.

Changing how COLA is calculated is one of the main tenets of The Social Security Expansion Act. It also calls for increasing monthly benefits and creating a strong and long-lasting Trust Fund, as the current one is expected to be depleted in about ten years.

How You Can Help

You can help make that happen by joining The Seniors Trust in calling on Congress to enact the Social Security Expansion Act. Please consider adding your name to our petition.