The following is a statement from Nancy Altman, President of Social Security Works, on Social Security’s 2027 cost-of-living adjustment (COLA), which will be 3.6 percent:

“Every year, Social Security’s benefits are automatically adjusted to account for inflation. This is an essential feature of the system, which prevents benefits from eroding over time.

Next year’s COLA can’t come soon enough for many Social Security beneficiaries. The Trump administration's war of choice with Iran and tariff chaos have driven gasoline prices up nearly 40 percent, and caused grocery costs to skyrocket.

The COLA adjustment will help. But it doesn’t fully account for the costs that Social Security beneficiaries face. That’s because the measure used to calculate it, the CPI-W, is designed to reflect the costs of working people — not retirees, who spend a higher percentage of their income on healthcare, housing, and other bare necessities.

Democrats in both the House and Senate have plans to improve the COLA, by switching to a more accurate measure, the CPI-E. Meanwhile, Republicans complain that the current COLA measure is too generous.

Many Republicans, including Speaker Mike Johnson, have endorsed plans to use a stingier measure, the chained CPI. That’s a cut to the American people’s hard-earned benefits.

Over time, switching to the chained CPI, as the Republicans have proposed, would shrink yearly benefits by hundreds and even thousands of dollars. Switching to the CPI-E, as the Democrats propose, would increase benefits. This would particularly impact women and Hispanics, who have longer average life expectancies.

In 2032, within the six-year terms of U.S. Senators elected this November, Social Security is projected to face a funding shortfall. The vast majority of Republicans refuse to support a single penny in revenue increases, even from the ultra-wealthy, to address the shortfall. That leaves benefit cuts, including less generous COLAs, as their only option.

The bottom line: Social Security’s future is on the ballot this November, and that includes the size of annual COLA adjustments.”