Over 50 million Americans rely on Social Security payments during retirement for steady income. With inflation and cost-of-living pressures rising, lawmakers say benefits aren’t keeping pace. Recently, the Social Security Administration (SSA) announced a 2.8 % increase next year through the usual annual cost-of-living adjustment (“COLA”) mechanism — yet many argue that still falls short given real-world price rises.
What You Should Know
Two Bills in Congress
Last week, two separate bills were introduced: the Social Security Emergency Inflation Relief Act and the Boosting Benefits and COLAs for Seniors Act.
- The first bill would give a $200 per month increase in Social Security benefits (and veterans’ benefits) until July 2026 if passed. Co-sponsors include Elizabeth Warren (Massachusetts), Kirsten Gillibrand (New York), Ron Wyden (Oregon) and Chuck Schumer (New York).
- The second bill would overhaul how the SSA calculates annual COLAs by switching the inflation measure from the current Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to the Consumer Price Index for the Elderly (CPI-E) — which arguably better reflects the spending habits of Americans aged 62 and over.
Why Change the COLA Formula?
Currently, the SSA uses CPI-W (which is based mainly on younger, urban workers) to determine annual inflation adjustments. Critics say this fails to reflect cost pressures on retirees (e.g., health care, housing). The proposed switch to CPI-E aims to tie adjustments to the actual spending patterns of older Americans.
Inflation Context
U.S. annual inflation rose to 3.0 % in September, up from 2.9 % in August, marking the highest level since January. Many seniors say their fixed incomes are not keeping up.
The Senior View on the Legislation
Benefits from Social Security are available to workers age 62+ as well as to disabled individuals and surviving family members. However, data from the The Senior Citizens League show many seniors are dissatisfied. In August 2025 the average monthly retirement benefit was about $2,008. The League found only about 10 % of seniors are satisfied with their benefit amount, and 73 % rely on Social Security for more than half of their income. They strongly advocate for the CPI-E change and other reforms to give older Americans a better chance at comfortable retirement.
What Stakeholders Are Saying
- Senator Kirsten Gillibrand said older Americans deserve to retire with dignity, not simply survive amid rising costs.
- Senator Elizabeth Warren contrasted large overseas expenditures with the domestic need to support seniors, saying the extra $200/month would help counter rising prices stemming from tariffs and inflation.
- Shannon Benton, Executive Director of The Senior Citizens League, urged Congress to take swift action to ensure COLAs are strengthened and benefit calculation methods updated.
Conclusion
The proposed legislation offers a two-fold path: short-term relief via a $200/month boost in benefits and long-term reform by changing how inflation adjustments are calculated (from CPI-W to CPI-E). For many retirees living on fixed incomes, these initiatives could provide meaningful financial breathing room amid rising costs. But both bills must pass Congress to become law. If approved, they could reshape how the U.S. supports older Americans.
Frequently Asked Questions
What exactly does the $200 monthly boost cover?
The boost would increase monthly payments for Social Security beneficiaries (and veterans’ benefits) by $200 each month until July 2026 under the proposed relief bill.
How would changing the COLA formula affect my benefit?
Switching to CPI-E means the annual increase would be based on inflation experienced by Americans aged 62+ rather than younger workers — potentially granting higher and more appropriate annual adjustments for retirees.
When would these changes take effect if the bills are passed?
If passed, the $200 monthly increase would apply immediately and run until July 2026. The COLA calculation change would apply to future annual adjustments once the law is in force.
