In October of 2022, the Social Security Administration announced an 8.7% Cost of Living (COLA) increase to Social Security payments that took effect on March 1, 2023. The increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers determines these annual increases (CPI-W). They’re designed to help Social Security beneficiaries keep pace with inflation. The idea is for the benefits to not lose value over time, but is that enough?
The Senior Citizens League (SCL) is advocating for a new cost-of-living adjustment (COLA) formula that better reflects the true costs faced by seniors. The CPI-E formula would consider the rising costs of healthcare and prescription drugs, which have been increasing at a faster rate than the overall CPI.
- Cost of Living: Social Security Increase and Medicaid Eligibility - March 31, 2023