Summary
A senior group, The Senior Citizens League, says the expected 2.7% cost-of-living adjustment (COLA) for Social Security in 2026 may not cover rising costs for seniors. They argue the formula used for the adjustment does not reflect real expenses faced by retirees and advocate for a different measure, the Consumer Price Index for the Elderly (CPI-E).
Key Facts
- The Senior Citizens League predicts a 2.7% increase in Social Security COLA for 2026.
- About 70 million Americans receive Social Security payments each month.
- The current formula for COLA uses the Consumer Price Index for Urban Wage Earners (CPI-W).
- The CPI-W may not accurately reflect seniors' spending, as it is based on urban workers' expenses.
- The Senior Citizens League proposes switching to the Consumer Price Index for the Elderly (CPI-E).
- CPI-E is thought to better capture costs like healthcare, which impact seniors more significantly.
- Financial experts agree that the current COLA does not fully keep up with inflation.
- Changes in the COLA formula could mean more social security payments for retirees.
