The Social Security cost-of-living adjustment (COLA) was created to help offset inflation. A report by The Motley Fool calls it a double-edged sword. That’s because even though a COLA increase means bigger benefits, the cost of living is also increasing.
Seniors will see a 3.6 percent COLA increase in 2027 –—one of the largest in years — yet they continue to lose buying power year after year.
The article explains, “Benefits in 2026 are worth only about $0.836 on the dollar compared to 2016, meaning benefits have lost 13.7 percent of their purchasing power over the past decade because COLAs have not kept pace with real-world inflation.”
Council of Seniors is Here to Help Older Americans
All of us here at the Council of Seniors believe that for years COLAs have failed to keep pace with inflation. We want to improve retirees’ financial futures and ensure they receive their full Social Security benefits. That’s why we’re 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.