The Senior Citizens League (TSCL) has issued a stark warning ahead of the delayed 2026 COLA announcement, claiming that seniors have already lost thousands in benefits and that \u201cit\u2019s only going to get worse\u201d if Congress doesn\u2019t act.<\/p>\n
Social Security Warning Issued Over COLA: Overview<\/p>\n
Agency\/GroupThe Senior Citizens League (TSCL)IssueInaccurate COLA calculations using CPI-WProposed FixReplace CPI-W with CPI-E (Consumer Price Index for the Elderly)Average Loss (1999\u20132024 Retirees)$5,000 \u2013 $12,000 in lifetime benefitsAffected Beneficiaries70 million + Social Security recipientsForecasted COLA 20262.7 % \u2013 2.9 % (subject to CPI-W data release)COLA Announcement DateOctober 24, 2025 (delayed due to shutdown)<\/p>\n
TSCL Raises Alarm: COLA Calculations \u2018Failing Seniors\u2019<\/p>\n
As the government shutdown delays the 2026 Social Security Cost-of-Living Adjustment (COLA) announcement, the Senior Citizens League (TSCL)<\/a> has issued a major warning: the way the government measures inflation is costing retirees thousands.<\/p>\n TSCL\u2019s analysis shows that the average senior who retired in 1999 has lost nearly $5,000 in lifetime benefits because the COLA uses the CPI-W, which tracks inflation for urban wage earners\u2014not retirees.<\/p>\n \u201cIf Congress continues to pass the buck on switching to the CPI-E, the problem is only going to get worse,\u201d said Shannon Benton, Executive Director of TSCL. \u201cCurrent retirees\u2019 Social Security benefits will fall further behind inflation, while future retirees will start from the back.\u201d<\/p>\n The CPI-W vs. CPI-E Debate Explained<\/p>\n What Is CPI-W?<\/p>\n The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)<\/a> measures inflation based on the spending habits of working Americans living in cities.<\/p>\n What Is CPI-E?<\/p>\n The Consumer Price Index for the Elderly (CPI-E)<\/a> focuses on seniors, weighting costs like health care, prescription drugs, and housing more heavily \u2014 categories that rise faster than average inflation.<\/p>\n Index TypeMain FocusWho It RepresentsAvg. Inflation DifferenceCPI-WWorking-age urban consumersUrban wage earners & clerical workersBaselineCPI-ERetired consumersAmericans 62 ++ 0.1 percentage point higher<\/p>\n Over the past 25 years, CPI-E has exceeded CPI-W 69 % of the time, meaning retirees\u2019 real costs have risen faster than the measure used for their benefit adjustments.<\/p>\n How Much Seniors Have Lost Because of CPI-W?<\/p>\n TSCL estimates that using the CPI-W instead of CPI-E has created a compounding loss in lifetime benefits:<\/p>\n Retirement YearEstimated Benefit Loss (1999 \u2013 2024)1999 Retiree$ 4,9802014 Retiree$ 8,0002024 Retiree$ 12,000<\/p>\n Each year that Congress fails to update the formula, the gap widens further \u2014 eroding retirees\u2019 purchasing power for essentials like housing and healthcare.<\/p>\n Delayed COLA 2026 Announcement<\/p>\n The Social Security Administration (SSA) typically announces the next year\u2019s COLA around October 15, but this year\u2019s government shutdown has pushed the release to October 24, 2025. The delay occurred because the Bureau of Labor Statistics (BLS) postponed the September CPI-W data, a critical component in the COLA formula.<\/p>\n Despite the delay, the SSA confirmed that benefits will still increase in January 2026 once the final number is published.<\/p>\n \u201cThe COLA delay is administrative, not financial,\u201d an SSA official stated. Projected 2026 COLA and Inflation Outlook<\/p>\n Early data suggest a modest increase in benefits for 2026. TSCL forecasts a COLA between 2.7 % and 2.9 %, influenced by tariffs introduced by the Trump administration, which have nudged inflation upward.<\/p>\n YearCOLA %Economic Context20238.7 %Post-pandemic inflation spike20243.2 %Moderating prices20252.5 %Stable inflation2026 (Est.)2.7 % \u2013 2.9 %Tariffs & supply-cost rebound<\/p>\n However, experts warn that even a higher COLA may fail to match rising costs if Medicare premiums and utility rates keep climbing.<\/p>\n \u201cWhen the COLA doesn\u2019t reflect real expenses, retirees lose thousands over time,\u201d Why the CPI-E Would Better Protect Seniors?<\/p>\n Switching to the CPI-E would tie Social Security increases more directly to seniors\u2019 real-world spending patterns.<\/p>\n \u201cThe CPI-E already exists; Congress just refuses to use it,\u201d Benton emphasized. \u201cIt\u2019s not about creating a new formula \u2014 it\u2019s about fairness.\u201d<\/p>\n Economists agree that CPI-E adjustments could slightly raise annual COLAs \u2014 about 0.1 % per year \u2014 translating to thousands more in lifetime benefits for retirees.<\/p>\n Broader Impact on America\u2019s Aging Workforce<\/p>\n Experts caution that inadequate COLA adjustments could ripple beyond seniors\u2019 finances, affecting the labor market itself.<\/p>\n \u201cDelaying a decision on the 2026 COLA and using the wrong index could force older adults to stay in the workforce longer,\u201d said Rachel Shaw, HR executive at Rachel Shaw Inc. \u201cThat pushes costs onto employers through higher workers\u2019-comp claims, more sick leave, and higher private disability claims.\u201d<\/p>\n Younger workers may also face tighter job markets as seniors take part-time positions traditionally held by new entrants, she added.<\/p>\n Reform Efforts: What Congress Has (and Hasn\u2019t) Done<\/p>\n Bills like the Social Security Expansion Act (2025)<\/a> and Social Security 2100 Act (2023)<\/a> both proposed using CPI-E, but neither gained traction in Congress.<\/p>\n Lawmakers cite the funding shortfall of the Social Security trust fund \u2014 projected to deplete around 2034 \u2014 as a major barrier.<\/p>\n \u201cThe bigger issue is overall Social Security reform,\u201d said Kevin Thompson. \u201cThe COLA formula won\u2019t change soon because lawmakers can\u2019t afford to increase payouts without new revenue. What\u2019s coming instead could be benefit cuts for those who can least afford them.\u201d<\/p>\n Key Takeaways<\/p>\n TopicDetailsMain ConcernCOLA uses CPI-W instead of CPI-E \u2014 hurting retireesLoss in Benefits$ 5 k \u2013 $ 12 k over a lifetime (1999\u20132024 retirees)COLA 2026 Estimate2.7 % \u2013 2.9 % increase expected Oct 24 announcementRoot CauseCPI-W ignores rising senior costs (health care & housing)Proposed FixSwitch to CPI-E for fairer adjustmentsLegislation StatusReform bills stalled in Congress<\/p>\n What Experts Are Saying?<\/p>\n Shannon Benton (TSCL Director): Kevin Thompson (9i Capital Group): Alex Beene (University of Tennessee): The Bottom Line<\/p>\n The Senior Citizens League\u2019s warning is clear: if Congress continues using CPI-W to calculate COLA, retirees will keep falling behind.<\/p>\n While a 2.7 % \u2013 2.9 % COLA for 2026 is expected later this month, it won\u2019t reverse years of lost buying power. With Social Security reform stalled and the trust fund\u2019s future uncertain, the gap between inflation and reality for America\u2019s seniors is indeed \u201conly going to get worse.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The Senior Citizens League (TSCL) has issued a stark warning ahead of the delayed 2026 COLA announcement, claiming…\n","protected":false},"author":2,"featured_media":244723,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530],"class_list":["post-244722","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/244722","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=244722"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/244722\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/244723"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=244722"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=244722"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=244722"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\u201cAll beneficiaries will receive their adjusted payments on schedule.\u201d<\/p>\n
said Kevin Thompson, CEO of 9i Capital Group. \u201cThat\u2019s money that could\u2019ve gone toward healthcare and housing.\u201d<\/p>\n
\u201cIf Congress doesn\u2019t fix the formula, this problem will get worse and worse. Every year seniors lose more ground to inflation.\u201d<\/p>\n
\u201cThe CPI-E would offer a small boost \u2014 not a windfall \u2014 but it better reflects real life for those on fixed incomes.\u201d<\/p>\n
\u201cSwitching to CPI-E would mean thousands more for seniors, but political gridlock makes any change unlikely soon.\u201d<\/p>\n