Each year, Social Security benefits are adjusted to account for rising inflation rates. This is known as the COLA, or Cost of Living Adjustment. The COLA is a percentage increase and it is implemented to all benefits issued by the Social Security Administration (SSA), including the Supplemental Security Income. This year’s COLA announcement faced some minor delays as a result of the federal government shutdown, however, the SSA was still able to announce the 2026 COLA before the end of October.
In 2026, all benefit amounts will receive a 2.8% increase. The average retiree benefit currently amounts to around $2,008 and as such, the average COLA increase for retirees will amount to around $56. Studies have revealed that the majority of seniors feel that the COLA is not truly reflective of the inflation they are feeling, whilst advocacy groups such as TSCL believe that the fault of this lies with the index used to calculated the COLA.
Several days following the announcement of the 2.8% increase, a group of senators led by Sen. Elizabeth Warren proposed the Social Security Emergency Inflation Relief Act. The proposed bill would add $200 to all Social Security and Veterans Affairs benefits for a temporary six month period ending in July 2026. Here is what you need to know.
The Social Security Emergency Inflation Relief Act
On October 30th, the Social Security Emergency Inflation Relief Act was introduced in Congress by Sen. Elizabeth Warren, with the backing of several other senators including, Kirsten Gillibrand of New York, Ron Wyden of Oregon and Chuck Schumer of New York. If this bill is passed, $200 per month would be added to all Social Security and Veterans Affairs benefits for a period of six months ending in July 2026. This $200 benefit boost would be implemented in addition to the 2.8% COLA increase that is also set to take effect as of January 2026.
The COLA is determined using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W measures the spending habits of cohort of individuals who are currently in the workforce and are presumably much younger. Advocacy groups such as The Senior Citizen’s League argues that the CPI-W does not accurately factor in costs faced by seniors such as medical care and housing, and as such, the COLA should be determined using the CPI for the Elderly.
Senate Minority Leader Chuck Schumer, and co-signer for the proposed bill also stated that the 2.8% COLA increase is “simply not reflective of the current reality for seniors”.
Boosting Benefits and COLAs for Seniors Act
Another bill titled the Boosting Benefits and COLAs for Seniors Act has also been proposed with the aim of changing the formula used to calculate the annual COLA increase from the CPI-W to the CPI-E. The Consumer Price Index for the Elderly measures the spending habits of seniors aged 62 and older, which also happens to be the age cohort for Social Security beneficiaries. Research from TSCL has revealed that the CPI-E consistently comes in higher than the CPI-W, meaning that seniors are losing out on money each year.
“Americans deserve to retire with dignity, not spend their golden years just trying to get by. Our seniors have spent a lifetime of hard work paying into Social Security, but the payouts simply aren’t keeping up with rising costs, and this year’s annual cost-of-living adjustment is not enough to keep seniors afloat,” Senator Kirsten Gillibrand of New York stated in a news release.
“These two bills would help make sure that older Americans don’t have to choose between paying for medication and buying groceries, providing both short-term relief and long-term solutions. As the top Democrat on the Senate Aging Committee, I’m determined to pass these critical bills to make sure our seniors can age comfortably.”