“Many retirees have experienced a sharp erosion in their purchasing power, as Cost-of-Living Adjustments (COLAs) have failed to keep pace with the rapidly rising costs of essentials such as food, housing, and healthcare,” TSCL explained in a statement to Nexstar.

What’s Really Squeezing Seniors’ Budgets

Here’s what’s driving retirement costs through the roof. TSCL’s research reveals a troubling trend that should concern anyone planning for retirement. Last month, they projected next year’s COLA at 2.6%. That’s barely a 0.1% bump from this year’s adjustment.

The real issue runs much deeper than small percentage increases. Those annual Social Security adjustments depend on the Consumer Price Index for Urban Wage Earners (CPI-W). The Bureau of Labor Statistics uses this metric to track price changes for everyday goods and services. But here’s the problem: TSCL argues this index fundamentally misrepresents what elderly Americans actually spend their money on.

We’re talking about medicine, housing, groceries. These essential expenses dominate fixed-income budgets, yet the current measurement system doesn’t accurately reflect their impact on seniors’ daily lives.

Survey Data Reveals Healthcare Cost Crisis

Recent survey data from nearly 2,000 Social Security beneficiaries confirms what experts have suspected for years. One in five people reported spending over $1,000 just on healthcare costs each month. Here’s the real kicker: 96% of those surveyed believe the Social Security Administration should use different data sources, like the Consumer Price Index for the Elderly (CPI-E), which actually tracks costs for Americans 62 and up.

The timing creates a perfect storm for Social Security recipients. Medicare Part B premiums routinely consume entire COLA increases. Seniors receive what appears to be a benefit increase on paper, but it vanishes immediately to cover higher insurance costs. This systematic erosion happens predictably, year after year.

New Data Collection Methods Raise Red Flags

There’s another concerning development that could affect future Social Security payments. Earlier this year, the Bureau of Labor Statistics stopped collecting data in three cities and reduced efforts in approximately 15% of 72 other metro areas. This raises serious questions about whether the more limited data accurately captures what seniors are paying for essential goods and services.

The BLS claimed in July that these changes didn’t significantly affect their results compared to previous methods. TSCL isn’t convinced, and frankly, neither should you be.

“If the government fails to act and the CPI’s data quality begins to erode, it increases the likelihood of the government providing a COLA that doesn’t match inflation,” TSCL wrote at the time.

How This Relief Payment Would Actually Work

TSCL isn’t proposing untested policy here. They’re referencing proven precedents from recent history that show this kind of Social Security relief can work. Remember those $250 Economic Recovery Payments that Social Security and SSI recipients received in 2009 during the Great Recession? The same distribution infrastructure could be deployed again.

Historical Precedent for Emergency Payments

According to BLS reports, a third of recipients used that money to pay off debt. That tells you something about how tight budgets really are for people living on Social Security alone.

Shannon Benton, TSCL’s executive director, also pointed to the Economic Impact Payments from the pandemic. The federal government has successfully executed similar programs during economic crises, proving the system can handle emergency Social Security supplements when needed.

“Many older Americans saw their Social Security buying power eroded during the recent inflation spike, and rising Medicare Part B premiums often wiped out their entire COLA increase,” Benton told Nexstar. “A catch-up payment would help restore that lost value and provide urgently needed relief for retirees living on fixed incomes.”

Distribution Process Would Follow Established Methods

Based on previous emergency payment programs, the distribution would likely follow these steps:

1. Congress would need to authorize the payment through legislation
2. The Social Security Administration would use existing payment systems
3. Recipients would receive payments through their normal benefit delivery method
4. Direct deposit recipients would see funds within days of authorization
5. Paper check recipients would receive payments within two to three weeks

The Numbers: $1,400 for Eligible Recipients

When it comes to specifics, TSCL is advocating for a $1,400 payment to Social Security beneficiaries. While they’re focusing specifically on seniors, Benton said they’d be “thrilled if everyone on Social Security could receive a special boost.”

That amount isn’t arbitrary. It mirrors pandemic relief payments that helped millions of Americans weather economic uncertainty. For someone living on Social Security alone, $1,400 represents several months of increased grocery bills or unexpected medical expenses. That’s substantial purchasing power when you’re managing a fixed income and every dollar counts.

The Social Security Administration hasn’t responded to requests for comment about this proposal yet. Questions about feasibility and implementation remain unanswered, leaving beneficiaries wondering if relief might actually be on the horizon.

The Bigger Picture: Is COLA Actually Working?

Beyond immediate relief, this proposal exposes a fundamental flaw in how we protect Social Security recipients from inflation. Are current benefit adjustments actually protecting retirees from rising costs? The overwhelming majority of seniors in TSCL’s recent survey say absolutely not.

The Measurement Problem

The disconnect between official inflation measurements and seniors’ daily experiences keeps widening. When four out of five seniors believe inflation was higher than government reports showed in 2024, we’re looking at systemic measurement failure, not perception issues among Social Security beneficiaries.

“If four in five seniors think inflation was higher than the government reported in 2024, maybe we should stop questioning their experiences and start questioning why the COLA is failing to measure them,” Benton said.

Why Current COLA Calculations Fall Short

The current COLA calculation uses the Consumer Price Index for Urban Wage Earners and Clerical Workers, which tracks spending patterns of working-age Americans. However, seniors spend their money differently:

• Higher percentage on healthcare costs
• More spending on prescription medications
• Different housing and transportation needs
• Less spending on work-related expenses

This mismatch means COLA increases often fail to reflect the actual inflation seniors experience in their daily lives.

Looking Forward: What This Means for Social Security

This isn’t about requesting additional Social Security benefits just for the sake of it. It’s about acknowledging that current systems inadequately protect beneficiaries from retirement financial pressures that keep mounting year after year. Whether policymakers will embrace this evidence-based approach to Social Security reform remains uncertain. But the momentum for better supporting America’s seniors is building among policy experts and advocacy organizations nationwide.

The truth is, millions of people depend on Social Security as their primary income source. According to SSA data, Social Security represents 90% or more of income for about one in four elderly beneficiaries. When that system fails to keep pace with real-world costs, it’s not just a policy problem. It’s a human crisis affecting the people who built this country and deserve better in their golden years.

For the most current information about Social Security benefits and any potential emergency payments, beneficiaries should regularly check SSA.gov or contact their local Social Security office directly.