Social Security Trust Funds Hit by Big 2022, 2023 COLAs

The long-term CPI-W trend since June of 2022 has been steadily downward, despite the recent higher inflation readings in January and February of 2023, she says.

Ultimately, Americans can expect to continue to receive COLAs in the years ahead, as these are baked into the benefit calculation formula, Johnson explains.

That said, it will be crucial for lawmakers to act soon to resolve the critical program’s funding woes. If a consensus isn’t achieved, she warns, millions of older Americans could slide into poverty.

That warning was also shared Friday by AARP CEO Jo Ann Jenkins, who issued a statement in response to the new report: “Social Security provides retirement income to more than 50 million Americans and is the largest source of income for most retirees,” Jenkins said.

“Medicare is the primary or only source of health care for most older Americans. Workers earn benefits by paying into both programs over the course of their careers with the promise that these programs will support them when they stop working,” she stated.

According to Jenkins, Social Security and Medicare are far and away the top issues that AARP members care about. Echoing Johnson and others, she explains that the next several years represent a “promising time when leaders from both parties have committed to protecting these vital programs.”

“It will take hard work to find bipartisan agreement, but this report shows how essential it is that leaders in Washington come together for the good of the country,” Jenkins said.

(Image: David Palmer/ALM)