Despite record COLA of 8.7% for 2023, “More work to be done to help seniors”
The Social Security Administration announced a historic 8.7 percent COLA increase for benefits in 2023. The extra money each month will help recipients cope with inflation to some degree when it comes to January payments.
However, there are concerns that more needs to be done, especially in the case of seniors, to make the COLA more responsive to the expenses they face that are not used in the current calculation.
The current COLA uses inflation figures from the CPI-W, a broad package of consumer goods and services. There are calls to use the CPI-E which focuses on goods and services that would “more accurately measure seniors’ spending habits”.
The Senior Citizens League recently reported that since the early 2000s, people on Social Security have lost 40 percent of their purchasing power.