Americans across the board are seeing the cost of living rise as the war with Iran drags on despite the ceasefire. The Islamic Revolutionary Guard Corps have throttled traffic through the Strait of Hormuz, a maritime chokepoint where a fifth of the world’s oil and natural gas travels through along with other vital resources.
This has helped drive up the cost of everything, taking a toll on American household finances. This is something felt acutely by those on fixed incomes like seniors. That higher inflation though will have a knock-on effect that could alleviate some of the pain, an outsized cost-of-living-adjustment.
The Senior Citizens League is predicting that the 2027 COLA will be 3.9%, the biggest in four years. Unfortunately, the non-profit that advocates for seniors’ rights has sounded the alarm that these automatic annual boosts to Social Security benefits haven’t been keeping up with inflation in the long run.
Social Security COLA lagging behind inflation
Inflation in 2026 is running at 3.9% according to the latest data from the April Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). That has surpassed the 2.8% bump Social Security benefits got at the beginning of the year when the 2026 COLA took effect.
Furthermore, in a report this year, according to The Senior Citizens League research “Social Security benefits in 2026 are only worth about 83.6 cents on the dollar compared to their 2016 value.” The study estimates that benefits have lost nearly 14% over the past decade.
Overall inflation in the U.S. economy has been 43.55% says The Senior Citizens League, but the government figure used to determine the COLAs, the CPI-W, measured only 37.6% inflation over the past ten years.
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