Most Social Security benefits are paid to older Americans who have contributed a portion of their lifetime wages into this retirement fund. These benefits are currently calculated using the CPI-W, or the Consumer Price Index for urban Wage Earners and Clerical Workers. This process analyzes the price change in a “basket” of goods and services these workers typically purchase. The resulting increase or decrease of these prices over time reflects the amount of inflation in our economy. To keep up with inflation, our Social Security Administration periodically increases benefits by what it calls Cost of Living Adjustments (COLA). However, advocates claim the CPI basket of goods and services used to calculate inflation is much different for the elderly than it is for younger consumers. Studies have shown the current CPI underestimates the higher rates of inflation for essentials such as housing and healthcare on which seniors spend much of their income. Advocates say seniors need their own CPI for Social Security benefits to keep pace with inflation – a CPI-E with E for elderly.

Pending Legislation: H.R.716 - Fair COLA for Seniors Act of 2023
Sponsor: Rep. John Garamendi (CA)
Status: Referred to 4 Committees for a period to be subsequently determined by the Speaker
House Minority Leader: Rep. Hakeem Jefferies (NY) (Requesting Discharge Petition)