Social Security benefits increased by 1.3% in 2021. But where does that number come from? We hope to help you in understanding your COLA.

The Social Security Administration bases your COLA (that is, your cost-of-living-adjustment) on the Consumer Price Index for Wage Earners and Clerical Workers.

To many retired Americans, this standard doesn’t make much sense. Seniors have very different spending habits than a store clerk or truck driver in his 20s. For instance, many consumer products such as widescreen televisions, coffee makers, and dish sets have tended to fall in price. These are the products young people may buy in renting their first apartment or starting a family.

Daily life essentials for seniors, on the other hand, have increased in price! In fact, your COLA lags behind actual cost-of-living increases.

Understanding your COLA may seem easy. But does it really make sense?

NORA’s Mission for Senior Citizens

At the National Organization of Retired Americans, we believe the COLA increases of the past 10 years are both inadequate and unacceptable. We believe in a fair, permanent increase of 3% so seniors can plan their futures.

With this mission in mind, NORA campaigns to pass the The Guaranteed 3% COLA for Seniors Act. Our objective is in the name: a 3% annual increase for all retired Americans receiving Social Security, every single year.

NORA goes further for seniors.

Additionally, we advocate to make this 3% increase retroactive to 2010. That means that SSI beneficiaries would be compensated for past low and missing COLAs.

Only by making the COLA retroactive will seniors receive the benefits they have missed for over a decade.

If you agree, please sign our Benefit Reimbursement Petition to Congress. This is the easiest way to stand up for your rights and make your voice heard by Congress!

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