There are 2 major problems with new Social Security COLA, experts warn

Key Points:

• The Social Security Administration announced a 3.6% cost of living adjustment (COLA), raising the average retired worker’s monthly benefit by $75 to $2,162, effective January 1.
• Advocacy group The Senior Citizens League (TSCL) criticized the increase as insufficient and delayed, stating it fails to keep pace with seniors' actual inflation experiences and does not address the months of elevated prices before benefits rise.
• TSCL highlighted survey data showing that 89% of seniors in 2026 felt the last COLA was too low, with many concerned their benefits will continue to lag behind inflation.
• The current COLA calculation uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which TSCL argues does not accurately reflect seniors' expenses, particularly medical and housing costs.
• TSCL advocates for adopting the Consumer Price Index for the Elderly (CPI-E) to better capture the inflation seniors face and ensure more adequate benefit adjustments.