Here at the Council for Retirement Security, we talk a lot about higher COLAs. But accurate COLAs are the true goal.
What does this mean? For millions of retirees, the annual Social Security Cost-of-Living Adjustment (COLA) is more than just a number. It’s a financial lifeline for those in need, and a promise that must be kept for every retiree.
But too often, that increase doesn’t come close to covering the real costs older Americans face.
How to Measure Accurate COLAs
Why are current COLAs inaccurate? The problem lies in the formula. Right now, COLAs are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This measure doesn’t accurately reflect the spending patterns of seniors.
Things like healthcare, prescription drugs, housing, and utility bills make up a much larger portion of a retiree’s budget. Not only that, but these costs also tend to rise faster than general inflation.
That means each year, even with a COLA increase, many seniors find their buying power shrinking.
We believe it’s time for a change. A more accurate measure, like the CPI-E, which tracks spending by older households, would go a long way toward ensuring that COLAs reflect the economic realities of retirement. In addition, we advocate for adjusted tax brackets to fund Social Security consistently and accurately.
Our mission is simple: protect what retirees have earned, and advocate for a benefits system that works. That includes pushing for COLAs that keep pace with the actual cost of living – not outdated metrics that leave seniors behind.
Retirees shouldn’t be asked to stretch shrinking dollars while expenses climb year after year. A stronger, smarter COLA isn’t just a policy upgrade – it’s a matter of fairness and dignity.
We’re committed to raising awareness and supporting reforms that give older Americans the secure, stable retirement they were promised – and deserve. If you agree, sign our petition to protect Social Security benefits.
