“With the COLA announcement around the corner, seniors across America are holding their breath,” TSCL executive director, Shannon Benton, said. “While a higher COLA would be welcome because their monthly benefits will increase, many will be disappointed. TSCL’s research shows that many seniors believe the COLA does not adequately capture the inflation they experience.”<\/p>\n
How the COLA Is Determined<\/p>\n
The SSA calculates the annual adjustment using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation based on the spending habits of younger, urban workers rather than retirees. Since 1975, COLAs have been applied each year using CPI-W data from the third quarter\u2014July through September\u2014with the intention of keeping benefits in step with rising costs for essentials like housing, food and medical care.<\/p>\n
![\"Social](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/08\/1755361516_496_social-security.jpg\")
\nStock image\/file photo: A Social Security card with U.S. Dollars.
\nStock image\/file photo: A Social Security card with U.S. Dollars.
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\n Who Receives the COLA Boost<\/p>\n
The annual COLA applies across all programs administered by the SSA, including:<\/p>\n
Retirement benefits, including spousal benefits based on a partner’s earningsSurvivor benefitsSupplemental Security Income (SSI)Social Security Disability Insurance (SSDI)<\/p>\n
If the 2.7 percent estimate holds, the tens of millions of Americans relying on these benefits will see the increase reflected in their monthly payments beginning in January 2026.<\/p>\n
COLA Concerns<\/p>\n
Concerns have been raised over President Donald Trump<\/a>‘s nomination of Heritage Foundation economist E.J. Antoni<\/a> to head the Bureau of Labor Statistics this week.<\/p>\n Less than two weeks earlier, he had dismissed the agency’s former commissioner, Erika McEntarfer, following the release of weaker-than-expected job figures. His nomination has heightened concerns that future BLS reports could be influenced to serve Trump’s political goals.<\/p>\n The BLS is the federal agency that produces key economic indicators, including the CPI-W. As commissioner, Antoni would oversee the collection, calculation, and release of inflation data.<\/p>\n Antoni has long argued that Social Security is financially unsustainable and should be phased out. In a 2024 radio interview, he labeled the 90-year-old program a “Ponzi scheme,” saying current beneficiaries should continue receiving payments but warning that future retirees should not count on it.<\/p>\n