Social Security is a lifeline for millions of Americans, but the way the government calculates annual cost-of-living adjustments, or COLA, has left many retirees feeling shortchanged. One of them, retired nurse Sue Conard, is speaking out — and she does not mince words.
Conard, 75, says the formula the government uses to determine increases in benefits is “completely wrong.” Her concern highlights a bigger issue: the way Social Security benefits are adjusted every year does not reflect the real costs seniors face.
What is the social security COLA and how is it calculated
Each year, the Social Security Administration adjusts benefits through the cost-of-living adjustment, better known as COLA. This adjustment is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Here is a breakdown:
- The CPI-W tracks price changes in things like housing, clothing, and transportation.
- The September inflation report is used to set the COLA for the following year.
- Roughly, about 70 million Americans see their Social Security checks change based on this calculation.
On paper, this looks fair. But for retirees like Conard, the formula leaves out a critical expense: healthcare.
Why sue conard says the cola is “completely wrong”
Standing on the steps of the Longworth House Office Building in Washington, D.C., Conard made her frustration clear. She believes that the current CPI formula does not capture the reality of older Americans.
“The issue of how the COLA is determined is flat-out wrong because healthcare is not factored into the CPI,” Conard said.
For someone who spent her life as a nurse, Conard knows that health-related costs rise faster than many other household expenses. Seniors often spend a bigger share of their income on things like:
- Prescription medications
- Doctor visits and specialist care
- Hospital stays and procedures
- Long-term care and home health services
None of these are properly weighed in the CPI-W. That is why Conard and others argue that seniors are losing ground every year, even when their checks technically go up.
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What is the proposed alternative to the current cola formula
Lawmakers have floated the idea of switching from the CPI-W to something called the Consumer Price Index for the Elderly (CPI-E). This index focuses specifically on the spending habits of older adults.
The CPI-E takes into account higher healthcare spending, as well as costs for food and medicine that hit retirees harder. Advocates say this would give seniors a fairer adjustment.
- AARP has long supported moving to CPI-E.
- Democratic lawmakers, including Sen. Bob Casey of Pennsylvania, have introduced bills to make the change.
- So far, these bills have stalled in Congress and never reached a Senate Finance Committee hearing.
How seniors are struggling despite annual increases
Even with yearly COLA increases, many retirees say they are still falling behind. Inflation in everyday items like groceries and housing continues to bite.
Vanessa Fields, a 70-year-old former social worker from Philadelphia, says she spends about $1,000 each month on groceries, far more than just a few years ago. The COLA, she argues, does not come close to covering that increase.
AARP Chief Executive Myechia Minter-Jordan put it bluntly: the COLA “is not just a source of income — it is a lifeline of independence and dignity for tens of millions of older Americans.”
What this means for the future of social security benefits
The Social Security Administration is expected to announce new COLA figures later this year. Payments will adjust beginning in January. But the bigger issue remains unresolved: whether the formula itself is fair to the people depending on it most.
At the same time, Social Security faces financial challenges. The latest trustees report projects the trust fund will not be able to pay full benefits by 2034. If nothing changes, retirees could see only about 81% of promised benefits.
For retirees like Sue Conard, the fight is not just about numbers on a check. It is about dignity, independence, and making sure the system works for the people who built their lives around it.
