Summary
The Senior Citizens League (TSCL) warned that the method used to calculate Social Security cost-of-living adjustments (COLA) is disadvantaging seniors. TSCL suggests switching from the current CPI-W index to the CPI-E index, which they argue better reflects the spending patterns of seniors. This issue affects millions of Americans who rely on Social Security payments.
Key Facts
- TSCL claims seniors are losing Social Security benefits because the government uses CPI-W to calculate COLA.
- CPI-W measures inflation for urban workers, while CPI-E focuses on expenses more relevant to seniors.
- The CPI-E has historically been slightly higher than the CPI-W, averaging 0.1 percentage points more.
- TSCL's report suggests seniors who retired in 1999 have lost about $5,000 due to the current calculation method.
- If the index used doesn't change, those retiring in 2024 could lose over $12,000 in benefits.
- Recent increases in inflation due to tariffs could lead to a higher COLA in 2026, between 2.7% and 2.9%.
- Higher COLA might not fully cover increased costs for seniors, such as rising Medicare premiums.
- Efforts to change the calculation method to CPI-E, like the Social Security Expansion Act, have stalled in Congress.
