To help offset inflation, Social Security provides for an annual cost-of-living adjustment (COLA).
Social Security Administration (SSA) Commissioner Frank J. Bisignano explained in a blog post: “Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security. The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”
The SSA is expected to announce the 2027 COLA on October 14. Data from the next two months is critical to that calculation.
According to a report by MySanAntonio.com, the COLA is determined by comparing the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July through September of the previous year to the same third-quarter period of the current year. If there is no increase, there is no COLA.
Early predictions indicate seniors could see a 3.6 percent COLA, translating to approximately $75 more in monthly benefits on average.
While every dollar matters, seniors would have better buying power if the SSA used the Consumer Price Index for the Elderly (CPI-E) in its calculations. This is a better reflection of the expenses older Americans face, such as healthcare.
Council of Seniors is Here to Help Older Americans
All of us here at the Council of Seniors want to improve retirees’ financial futures and ensure they receive their full Social Security benefits. We are working with members of Congress to introduce the “Social Security Restitution Act.” It would provide an estimated $970 one-time payment to every retired worker receiving Social Security benefits, to help offset years of inadequate cost-of-living adjustments.
According to Council of Seniors’ Executive Director Barbara Godwin, “For years, seniors have watched their Social Security checks fail to stretch as far as they should, while the cost of everyday essentials keeps climbing. This legislation is a straightforward, targeted way to help make up for COLAs that didn’t reflect what retired Americans were actually paying to get by.”
Please take a moment and sign our petition today to show your support.