Find Out How Government Staffing Could Impact the Social Security COLA
To ensure seniors retain buying power during periods of inflation, Social Security has an annual cost-of-living adjustment (COLA). The inflation data used to calculate that is collected by the Bureau of Labor Statistics (BLS). The problem is, according to an article by Kiplinger, the BLS stopped collecting data from three cities due to staffing shortages. This could lead to less accurate inflation numbers, potentially resulting in a smaller COLA for Social Security beneficiaries.
While the BLS assures that the lack of data will have minimal impact on the overall inflationary indexes, senior advocates aren’t convinced. Many are concerned that the absence of data could lead to inaccuracies in regional or item-specific inflation measures, potentially affecting the COLA calculation.
The latest estimate, according to a Yahoo! Finance report, is that the 2026 Social Security COLA will be 2.7 percent — that’s up a bit from this year’s 2.5 percent COLA. The official announcement will be made in October.
The Seniors Trust is committed to improving the financial well-being of older Americans through the passage of the Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual COLA, increased minimum benefits, and ensure the long-term solvency of the Social Security program.
