Results for: COLA

A bipartisan bill introduced in the House of Representatives and Senate seeks to reform the calculation of the yearly cost-of-living adjustment (COLA) for Social Security benefits. The Boosting Benefits and COLAs Act proposes using the Consumer Price Index for Elderly Consumers (CPI-E), which more accurately reflects the inflation experienced by seniors, to determine the COLA adjustment. The current method, based on the CPI-W, may underestimate the rising costs faced by retirees, such as healthcare expenses. The bill aims to ensure that Social Security benefits keep pace with inflation, enabling seniors to maintain their standard of living. The companion bill, introduced in March, awaits further legislative action.

A new proposal in Congress, the Boosting Benefits and Cola for Seniors Act, seeks to increase monthly Social Security benefits by adjusting the calculation method for the annual Cost-of-Living-Adjustment (COLA). The bill replaces the current Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) with the Consumer Price Index for all Americans aged 62 and over, which is believed to better account for inflation experienced by seniors, especially in healthcare costs. The proposed change has received support from various organizations representing seniors and labor unions. Companion legislation has also been introduced in the Senate, and recent projections indicate a potential increase in COLA in 2025.

Social Security beneficiaries born between the 21st and 31st of any month will receive their monthly payments on Wednesday. Retirees, individuals with disabilities, and survivors of deceased claimants are eligible for benefits. The maximum payment amount is $4,873, but most will receive less. SSI recipients, which includes individuals with disability and retirees with low income, typically receive lower payments.