Why Some Say Social Security COLAs Shouldn’t Matter

In just a couple of weeks, we will know what the Social Security cost-of-living adjustment (COLA) will be for 2024. All indications are that it will be somewhere around 3 percent. That’s a deep decline from 2023’s 8.7 percent COLA. But, as The Motley Fool points out, seniors shouldn’t get discouraged. The lower COLA is simply a reflection of lower inflation rates. The article suggests not to put too much stock in the COLA because a larger COLA means expenses are higher too… so basically it all evens out.

The Seniors Trust believes retirees would be best served if the Social Security Administration used a different COLA calculator — one that better takes into account the actual spending habits of seniors. Using the Consumer Price Index for the Elderly (CPI-E) instead of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is one of key points of the Social Security Expansion Act.  

This landmark piece of legislation will increase monthly benefits, establish a fair COLA, and secure the long-term solvency of the Social Security program, ensuring it is here for all retirees — today and tomorrow.