Tag Archives for Consumer Price Index

Just Days Away: Social Security to Announce 2027 COLA Increase

Published in RINewsToday on October 12, 2026

In just a few days, nearly 279,000 Rhode Islanders who rely on Social Security and Supplemental Security Income (SSI) will learn how much their monthly checks will increase in 2027 when the Social Security Administration (SSA) announces next year’s cost-of-living adjustment (COLA). Social Security recipients will see the increase in January, while SSI recipients will receive their adjusted payments on Dec. 31, 2026, because New Year’s Day is a federal holiday. The additional income will help them keep pace with rising costs.

Older Rhode Island beneficiaries will be joining 75 million Americans—including roughly 71 million Social Security beneficiaries and between 7.3 and 7.5 million SSI recipients—awaiting this highly anticipated news.

SSA is expected to announce the official 2027 COLA on Wednesday, Oct. 14, following the release of September inflation data by the U.S. Bureau of Labor Statistics.

According to the Virginia-based The Senior Citizens League (TSCL), the SSA’s COLA for 2026 was 2.8 percent, somewhat higher than the 2.5 percent COLA implemented at the start of 2025. TSCL predicts that the COLA for 2027 will tick up to 3.5 percent.  AARP experts project an even higher COLA increase for 2027 than TSCL estimates, at 3.6 percent.

Congress enacted the COLA provision as part of the 1972 Social Security Amendments, and automatic annual COLAs began in 1975, says SSA, noting that before then Congress could only increase this benefit through special legislation.  The new provision tied COLAs to the annual increase of the Consumer Price Index (CPI-W).

SSA calculates the COLA by comparing the average CPI-W for July, August and September with the average for the same three months of the previous year.  The percentage is rounded to the nearest tenth of one percent and determines the annual adjustment.

With the 3.5 percent projection, the average beneficiary’s monthly benefit increases by $67.90. The current average beneficiary receives $1,940.08 in their monthly Social Security check. With a 3.5 percent COLA, that would rise to $ 2,007.98, estimates TSCL

If TSCL’s calculation holds, the 2027 COLA would land right in the middle of the ranking historically—ranking 19th among all COLA adjustments since the federal government started using its current inflation math in 1977. By comparison, the recent boost seniors received at the start of 2026 was a bit more modest, tying for 27th place.

“The biggest thing we’re watching with the COLA announcement coming are short-term shocks to the economy that push inflation way up or down in the next 30 days. Of the three CPI-W figures used to calculate the COLA, two are already in,” said TSCL Executive Director Shannon G. Benton in a statement releasing the 2027 estimated projections.

“No matter if the COLA announcement comes in slightly higher or slightly lower than our prediction, seniors will probably end up disappointed in the long run,” said Benton, noting that older Americans allocate their budgets differently than people still in the workforce, so inflation hits them differently. The consumer price index (CPI) captures the experience of urban wage earners, which doesn’t represent the average senior’s budget, she adds.

“The COLA only happening once a year puts life on hold for a lot of seniors. When prices rise, they don’t rise next January when your benefit check goes up. They rise right now. We need to consider COLAs that compound quarterly or monthly so seniors can keep up throughout the year when inflation comes in above Federal Reserve targets, like in 2026,” adds Benton.

Advocates Push for CPI-E Index

In a recent AARP Sept. 11 blog post, “Social Security COLA 2027: An Early Look at How Much Payments Could Increase,” writer Deirdre Shesgreen interviewed Rich Johnson, the vice president for financial security at the AARP Public Policy Institute. Johnson emphasized that the organization’s COLA forecast is meant to give older adults a head start on managing their 2027 finances.  “Family budgets have been under increasing pressure because of rising prices,” Johnson noted. “The sooner that we can give them reliable information as to how much their benefits might [increase next year], the sooner they can start planning,” he said.

“Most seniors depend on Social Security for some or all of their income, and the program’s annual Cost of Living Adjustments (COLAs) for inflation help keep them from falling behind,” says Max Richtman, President & CEO, National Committee to Preserve Social Security & Medicare, noting that even the estimated 3.5-3.6% increase will barely be enough for seniors to tread water.

“That’s because the COLA is based on an inflation index that does not account for the impact of inflation on seniors’ true expenses, especially health care costs – which are rising faster than the general inflation rate,” said Richtman, calling for the adoption of the CPI-E (Consumer Price Index for the Elderly).  This CPI index is designed to better reflect older American’s spending patterns.

“What we know is that when the COLA is announced, it will be far too low to make up for the crushing prices everybody is facing right now. But seniors and those on fixed incomes are being crushed the hardest,” said Alex Lawson, Executive Director of Social Security Works.

His concerns come as Census Bureau figures show that the poverty rate among Americans aged 65 and older rose from 9.4 percent in 2020 to 15.4 percent in 2025, according to the Supplemental Poverty Measure, which accounts for medical expenses and other living costs.

“And still Republican proposals, when we see them, include provisions to cut back on the COLA, which is just a cruel benefit cut. We need to expand Social Security, increase benefits, raise the COLA, and pay for it by having billionaires pay the same rate on all of their income into Social Security. Just like the rest of us do,” argued Lawson.

Improving SSA’s Benefit Calculation Formula

TSCL advocates for the Social Security 2100 Act, legislation championed by Congressman John Larson (D-Connecticut), first introduced in 2017 and reintroduced in 2026.

Lawmakers reintroduced this legislative proposal to provide long-term relief to seniors losing buying power due to high inflation.  The bill would raise benefits by 2%, set the new minimum benefit to 125% of the Federal poverty line, change the COLA calculation to the CPI for the Elderly (CPI-E), and improve the benefits calculation formula, said TSCL.

“Although the Social Security 2100 Act is unlikely to pass in the current Congress, it should.  The bill is the gold standard for Social Security reform and accomplishes the majority of changes older Americans want to see in the program,” says TSCL’s Benton in a statement released on July 14. “The reality is that poverty is increasing rapidly among American seniors, who make up the fastest-growing portion of the homeless population. Adjusting the minimum benefit to above the Federal poverty line would almost certainly slow this trend, although more holistic efforts may be required to stop it entirely,” she says.

Modest Social Security COLA increase seen as chump change by some

Published in RINewsToday on October 16, 2023

Last week, the Social Security Administration (SSA) announced that Social Security and Supplemental Security Income (SSI) benefits for more than 71 million beneficiaries will increase 3.2% in 2024, about $59 per month starting in January. The 2024 payment declined from last year’s 8.7%, but that had been the highest in four decades. And, its higher than the average 2.6% increase recorded over the past 20 years.

The Social Security Act determined how the cost-of-living adjustment (COLA) is calculated. Enacted on August 14, 1935, the Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Department of Labor’s Bureau of Labor Statistics.

More than 66 million Social Security beneficiaries will see that COLA increase 3.2% beginning in January 2024, and increased payments to approximately 7.5 million people receiving SSI will begin on December 29, 2023. (Note: some people receive both Social Security and SSI benefits).  

“Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses,” observes Kilolo Kijakazi, Acting Commissioner of Social Security in an Oct. 12 statement announcing this year’s COLA increase.

According to SSA, some other adjustments that will also take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600 from $160,200.

Advocacy groups on aging talk turkey about COLA

“The annual COLA is a reminder of Social Security’s unique importance. Unlike private-sector pension plans, whose benefits erode over time, Social Security is designed to keep up with rising prices, noted Nancy Altman, President of the Washington, DC-based Social Security Works (SSW), in response to SSA’s COLA announcement.  

“Retirees can rest a little easier at night knowing they will soon receive an increase in their Social Security checks to help them keep up with rising prices,” said Jo Ann Jenkins, AARP chief executive. “We know older Americans are still feeling the sting when they buy groceries and gas, making every dollar important,” she added, stressing that Social Security has been the foundation for financial security for hundreds of millions of retirees. “SSA’s COLA announcement shows that it’s continuing to deliver on this promise,” she says.  

However, Max Richtman, President and CEO, National Committee to Preserve Social Security and Medicare charges, “While we are grateful that Social Security is the only major retirement program with a built-in cost-of-living adjustment, the current formula for determining COLAs is inherently flawed. SSA’s current COLA formula doesn’t truly reflect the increase in prices for the goods and services that beneficiaries rely on.”

According to Richtman, the 3.2% 2024 COLA only represents a modest $59 increase in the average monthly benefit for retired workers, and that’s before deducting the projected increase in the 2024 Medicare Part B premium of about $10 per month. Because of this the average retirement beneficiary will receive a net COLA of about $50. 

Richtman notes, “That is not enough for a tank of gas or half a week’s worth of groceries in many states. The net COLA will barely cover one brand-name prescription co-pay for some patients.”  

Last year, Richtman noted that the COLA of 8.7% was unusually high, the highest in some 40 years. But post-pandemic inflation was also at record highs, he said, noting that historically, COLA’s have been relatively low. In fact, the COLA has been ZERO; three times since 2009.  

“Seniors deserve an accurate COLA formula that accounts for the impact of inflation on their living costs. That is supposed to be the entire purpose of a COLA. The current formula measures the impact of inflation on urban wage earners and clerical workers. How is that a reasonable formula for seniors? Seniors have different spending patterns than urban wage earners & clerical workers,” asks Richtman.  

Richtman notes that seniors spend more than other age group on expenses like housing, long-term care, and medical services. “We strongly favor the adoption of the CPI-E (Consumer Price for the Elderly) for calculating COLAs. The CPI-E would more accurately reflect the impact of inflation on the goods and services seniors need, he believes. 

The CPI-E is included in both major pieces of legislation to expand and protect Social Security that have been introduced in this Congress: Bernie Sanders’ Social Security Expansion Act and Rep. John Larson’s Social Security 2100 Act.  We have endorsed both of those bills as part of our commitment to boosting Social Security for current and future retirees. It’s past time for Congress to act,” says Richtman. 

Although the 3.2% COLA is well above the 2.6% average over the past 20 years, a newly released retirement survey released on Oct. 12, 2023, by The Senior Citizens League (TSCL) indicates that seniors are pessimistic about their financial well-being in the upcoming months and very concerned about growing calls on Capitol Hill for Social Security cuts. Sixty-eight percent of survey participants report that their household expenses remain at least 10 percent higher than one year ago, although the overall inflation rate has slowed. This situation has persisted over the past 12 months.

According to TSCL’s latest retirement survey, worry that retirement income won’t be enough to cover the cost of essentials in the coming months is a top concern of 56 percent of survey respondents. Social Security benefit cuts are an even bigger concern, ranked as the number one worry by nearly 6 out of 10 survey participants, or 59%. Over the past year, benefit cuts and trims have affected a large percentage of older Americans low-income households, individuals who can least afford them.

A year ago, TSCL warned that higher incomes due to the 5.9% and 8.7% COLAs in 2022 and 2023 could potentially affect eligibility for low-income assistance programs such as SNAP and rental assistance. Earlier this year, federal emergency COVID assistance for SNAP (food stamps) and Medicaid also ended. Surveys conducted in 2022 and this year suggest that significant numbers of lower-income older households have lost access to some safety net programs over the past 12 months, the survey finds.

A Final Note…

Social Security plans to start notifying beneficiaries about their new COLA amount by mail starting in early December. Individuals who have a personal “my Social Security account” can view their COLA notice online, which is secure, easy, and faster than receiving a letter in the mail. People can set up text or email alerts when there is a new message–such as their COLA notice—instead of waiting for them in my Social Security.

People will need to have a “my Social Security account” by November 14 to see their COLA notice online. To get started, visit www.ssa.gov/myaccount.

Information about Medicare changes for 2024 will be available at www.medicare.gov. For Social Security beneficiaries enrolled in Medicare, their new 2024 benefit amount will be available in December through the mailed COLA notice and my Social Security’s Message Center.

For details about SSA’s 2024 Changes, go to: https://www.ssa.gov/news/press/factsheets/colafacts2024.pdf.

Larson Pushes to Get Social Security Reform Proposal for House Vote

Published in Pawtucket Times on June 13, 2022

The House Ways and Means Committee is preparing for a full mark-up on H.R. 5723, Social Security 2100: A Sacred Trust, authored by Committee Chairman John B. Larson (D-CT) this summer. Last week Larson held a press conference calling for passage of the legislative proposal. 

The morning press conference, held on June 2nd at the Connecticut AFL-CIO headquarters, based in Rocky Hill, Connecticut, brought together Connecticut AFL-CIO President Ed Hawthorne, Connecticut Alliance for Retired Americans President Bette Marafino, State Senator Matt Lesser, State Senator Saud Anwar, State Representative Amy Morrin Bello to announce the endorsement of H.R. 5723 by the AFL-CIO.  The AFL-CIO is known as the nation’s largest federation of unions, made up of 56 national and international unions, representing more than 12 million active and retired workers.

On the same day, the Social Security Administration released the 2022 Social Security Trustee Report.

According to Larson’s statement, over 200 House Democrats [no Republican has yet to support the proposal], are cosponsoring H.R. 5723. Forty-two national organizations (aging, union, veterans, disability and consumer health organizations) are calling for passage of H.R. 5723, including the Leadership Council on Aging Organizations and the Strengthen Social Security Coalition representing hundreds of national and state aging organizations.

Larson noted that it has been 50 years since Congress acted to expand Social Security benefits. The Connecticut Congressman stated: “By passing Social Security 2100: A Sacred Trust, we can act now to expand our nation’s most effective anti-poverty program and ensure this program remains a ‘sacred trust’ between the government and its people. It is an honor to stand alongside the AFL-CIO today as they announce their support for our legislation.”

“Social Security benefits are a promise made to workers and Social Security 2100 is essential in fulfilling this promise,” said Connecticut AFL-CIO President Ed Hawthorne. He praised Larson’s efforts to repeal the Windfall Elimination Provision that harms Connecticut’s teachers, firefighters, and police officers by reducing social security benefits they earned because they are receiving pensions after years of dedicated public service.

“Retirees and those most vulnerable in our society depend on Social Security to live a life of dignity. The Connecticut AFL-CIO and our over-200,000 members stand in solidarity with Congressman Larson in his fight to ensure Social Security is a promise we keep for generations of Americans to come,” said Hawthorne.

State Senator Saud Anwar, (D-South Windsor) joined Larson and others, too, supporting H.R. 5723. “Social Security has long been an American institution, one relied upon and paid into by countless citizens who receive a promise that they will be taken care of,” said the Connecticut Senate’s Deputy President pro tempore. “We must take action to expand this program and ensure this vital service will remain available for future generations, and Social Security 2100 will do just that. I am grateful for Connecticut’s federal representatives in their work to support our communities, our state and our country,” he said.

Senator Richard Blumenthal (D-CT), who introduced the companion bill to H.R. 5723 in the Senate could not be there, but issued this statement: “As seniors and people with disabilities struggle with the costs of food, housing, and prescription drugs, this bill enhances and expands benefits for millions of Americans who need them. I am proud to stand with my colleagues and union members to support the Social Security 2100 Act, keeping this vital lifeline solvent ensuring our nation’s bedrock social insurance program will continue to provide current and future beneficiaries with a quality standard of living,” said Connecticut’s senior Senator. 

H.R. 5723: The Nuts and Bolts

On Oct. 26, 2021, H.R. 5723 was referred to the House Ways and Means, Education and Labor, and Energy and Commerce Committees, being introduced in the lower chamber that day.

According to a legislative fact sheet, H.R. 5723 gives a benefit bump for current and new Social Security beneficiaries by providing an increase for all beneficiaries (receiving retirement, disability or dependent benefits).

Larson’s Social Security fix also protects Social Security beneficiaries against inflation by adopting a Consumer Price Index for the Elderly (CPI-E), to better reflect the costs incurred by seniors who spend a greater portion of their income on health care and other necessities.

This legislative proposal protects low-income workers by providing a new minimum benefit set at 25% above the poverty line and would be tied to wage levels to ensure that minimum benefits does not fall behind.

It also contains other provisions that seniors and their advocates have sought for years, including:

  • Improving Social Security benefits for widows and widowers in two income households so they are not penalized for having two incomes.
  • Ending the five-month waiting period to receive disability benefits so those with ALS or other severe disabilities no longer have to wait.
  • Providing caregiver credits for Social Security wages to ensure that caregivers are not penalized in retirement for taking timeout of the workforce to care for children and other dependents.
  • Extending Social Security benefits for students to age 26 and for part-time students.
  • Increasing access to Social Security dependents for children who live with grandparents or other relatives.                       

H.R. 5723 would pay for strengthening the Social Security Trust Fund by having millionaires and billionaires pay the same rate as everyone else. Currently, payroll taxes are not collected on an individual wages over $142,800. The legislative proposal would apply payroll taxes to wages above $400,000, only impacting the top 0.04% of wage earners.

Larson’s proposal would also extend the solvency of Social Security by giving Congress more time to ensure long-term solvency of the Trust Fund.  It also cuts long-term shortfalls by more than half.

Finally, H.R. 5723 would combine the Old-Age and Survivors Insurance with Disability Insurance into one Social Security Trust Fund, to ensure all benefits will be paid.

NCPSSM Pushes for Passage

Even with over 200 cosponsors, a Washington insider says that H.R. 5723 may be stalled because of concerns of House Speaker Nancy Pelosi’s (D-CA) policy staff about the cost of the proposed legislation.  At press time, House lawmakers are waiting for the non-partisan Congressional Budget Office to score the legislation [to determine its cost], this being required to bring it to the House floor for a vote.

In a blog article, posted on May 27th by the Washington, DC-based National Committee to Preserve Social Security and Medicare (NCPSSM), seniors are urged to request their House lawmakers, if they are not currently cosponsoring H.R. 5723, to support Larson’s landmark legislation to strengthen Social Security.  According to the NCPSSM, Reps. Cynthia Axne (D-IA) Susie Lee (D-NV) and Tom O’Halleran (D-AZ) are among the 22 Democrats that have not yet sponsored H.R. 5723. With the upcoming mid-term elections just 148 days away, these Democratic lawmakers may fear Republican attacks, accusing them of raising taxes, speculates NCPSSM.

“The more Democratic co-sponsorships the bill garners, the stronger the case that House leadership should bring it to the floor for a vote,” says NCPSSM.

NCPSSM reports that Larson’s Social Security proposal has strong public support. “A poll by Lake Research Partners showed that across party lines, 79% supported paying for an increase in benefits by having wealthy Americans pay the same rate into Social Security as everyone else. A recent survey of our members and supporters indicated 96 percent support for raising the cap,” says the Social Security Advocacy group.

NCPSSM says Larson’s legislative proposal gives Democrats an opportunity to build upon, strengthen, and expanding the Social Security program, created by President Franklin D. Roosevelt in 1935. 

Many feel it is time for House Speaker Nancy Pelosi to use the power of her office, responding to over 200 Democrats in her Caucus, to bring H.R. 5723 to a House Ways and Means Committee and floor vote.  If the Republicans take control of the House and Senate Chambers, Social Security reform to expand and strengthen Social Security may be in jeopardy, so time is of the essence to supporters to see H.R. 5723 passed and enacted.