The ongoing government shutdown is impacting the timely announcement of the Social Security cost-of-living adjustment (COLA), which affects tens of millions of beneficiaries. Originally slated for Wednesday, the 2024 COLA announcement has been pushed back to October 24, coinciding with the release of the September Consumer Price Index, which has similarly been delayed. This postponement underscores the challenges individuals face in planning their finances as the shutdown extends into its third week with minimal signs of a resolution.
Estimates from organizations like the Senior Citizens League and AARP project a COLA increase of approximately 2.7%. Around 70.6 million beneficiaries, including retirees, disabled individuals, and children, rely on Social Security benefits. However, many recipients have expressed concern that even this modest increase may not be sufficient to match the rising costs they face.
Sue Conard, a 75-year-old retired nurse from La Crosse, Wisconsin, who benefits from Social Security, recently joined fellow retirees in a lobbying effort at the U.S. Capitol. Their aim is to urge lawmakers not only to end the government shutdown but also to consider significant changes to how Social Security benefits are calculated. Conard criticized the current method as inadequate, claiming it does not take healthcare costs into account, which are often substantial for older Americans. “The issue of how the COLA is determined is flat-out wrong because health care is not factored into the CPI,” she stated.
In response to concerns like Conard’s, some lawmakers have suggested legislation to adopt a different index known as the Consumer Price Index for the Elderly (CPI-E). This alternative would better reflect the spending patterns of older adults, particularly in categories such as healthcare, food, and medicine. Despite efforts to amend the calculation, previous proposals, including those from Senator Bob Casey, have not advanced through the Senate Finance committee.
AARP CEO Myechia Minter-Jordan emphasized the importance of the COLA, describing it as “a lifeline of independence and dignity” for many older Americans. Nonetheless, even with an adjusted COLA, numerous individuals still struggle to meet basic living expenses. Vanessa Fields, a 70-year-old former social worker from Philadelphia, highlighted her own challenges, reporting monthly grocery expenses nearing $1,000. She stated that the current COLA fails to keep pace with increasing costs, warning, “we’re going to be in bad shape if lawmakers don’t act.”
Despite the delays, Social Security is expected to begin informing beneficiaries of their new benefit amounts in early December. A spokesperson for Social Security indicated that adjustments to retirement and Supplemental Security Income benefits would take effect on January 1, 2026, with no anticipated delay due to the government shutdown.
The agency’s ability to manage these adjustments comes at a time of financial strain on the Social Security program. The June trustees report warned of an impending fiscal shortfall, forecasting that the trust fund would be unable to fulfill full benefits starting in 2034—one year earlier than previously estimated. If the trust fund were to be exhausted, the government could only provide 81% of scheduled benefits.
Compounding these issues, the Social Security Administration has also seen a significant reduction in its workforce, with at least 7,000 employees laid off from a staff of 60,000 earlier this year. This reduction has heightened pressure on remaining employees as they strive to address a growing number of claims and inquiries from recipients.
