Is the 2023 COLA Too Little, Too Late?
In January, Social Security recipients will see a big monthly benefits boost thanks to an 8.7 percent cost-of-living adjustment (COLA) to help offset high inflation. This is the largest increase since 1981. But according to an article by CNET, it might be too little, too late.
The National Council on Aging calls the 2023 COLA increase insufficient, stating “While this increase is historic and needed, it is also inadequate for the millions of older Americans who face skyrocketing housing and health care costs across the country.”
The problem is COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. A more accurate measure would be the Consumer Price Index for the Elderly, or CPI-E. It puts greater emphasis on the price of health care, housing and other goods and services that have a greater impact on older Americans.
This is one of the reasons The Seniors Trust supports the Social Security Expansion Act. This landmark piece of legislation would adopt the CPI-E as the COLA calculator, in addition to increasing Social Security benefits and creating a strong and long-lasting trust fund.
