Many seniors have wondered this year, why is the Social Security COLA so low? The answer requires some background.

If you receive Social Security benefits, you have noticed that benefits change annually. This cost-of-living-adjustment, or COLA, is based on a consumer price index. Specifically, the US government bases your Social Security COLA the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

This basis has led to large fluctuations over time. A recent history of the Social Security COLA offered by AARP provides details. For instance, the COLA rose in 1980 by 14.3% owing to inflation. In recent years, the COLA has remained low. For instance, this year seniors will see a 1.3% increase based on the price index. In 2015, retirees received no COLA at all!

Yet America’s seniors have very different spending habits than most wage earners. Some of the fastest rising costs include essentials such as food and healthcare.

At NORA, we advocate stand by legislation providing a fair, 3% permanent COLA for seniors. Furthermore, we advocate for this increase to be retroactive. Only by making the COLA retroactive will seniors be reimbursed for years of unfair treatment.

If you agree that America’s seniors deserve a fair, 3% COLA retroactive to 2010, please help us in our campaign. The best way to do that is by signing our Benefit Reimbursement Petition to Congress. That way, Congress will know that you stand for the fair, financial security America’s seniors have earned.

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