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How Much Social Security Benefits Lost to Inflation, According to TSCL’s 2026 Study

TSCL’s 2026 study estimates Social Security benefits lost 13.7% of purchasing power over the past decade, using its own 70-item price index—not SSA’s official COLA measure.
From TheFinanceBase Team3 min to read
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The Senior Citizens League (TSCL) estimates that Social Security benefits lost 13.7% of their purchasing power between 2016 and 2026. In TSCL’s comparison, a dollar of 2016 benefits buys about 86.3 cents’ worth of the items in its 2026 index. That is an estimate from TSCL’s own price index—not an official Social Security Administration (SSA) statistic or a measure of every beneficiary’s personal inflation.

How much has Social Security’s buying power declined?

TSCL’s 2026 report estimates a 13.7% decline in benefits’ purchasing power over the 2016–2026 period. Its index recorded 43.55% inflation, compared with 37.60% in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). TSCL compares the two cumulative inflation factors to estimate what benefits can buy relative to 2016: about 86.3 cents per 2016 dollar. Read TSCL’s 2026 report and methodology.

The report also gives a 15.8% catch-up increase as the amount needed to regain the comparison value. That percentage is larger than the estimated loss because reversing a percentage decline requires a larger percentage increase: a 13.7% reduction from a starting value does not return to that value with a 13.7% increase.

What TSCL’s estimate measures—and what it does not

TSCL’s report, Social Security’s Loss of Buying Power: 2026 Edition, uses a 70-item price index intended to reflect budget-conscious older adults. It averages prices within major spending categories, weights those categories using CPI-W importance ratings, and describes efforts to compare like items in 2016 and 2026, standardize units, and choose affordable options when alternatives were available.

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The result therefore depends on TSCL’s selected goods and services, price sources, and weighting approach. It is not a calculation of the actual inflation experienced by every older adult, and it is not an SSA finding. A beneficiary’s own cost changes can differ according to housing, health-care use, location, shopping choices, and other household circumstances.

How this differs from the official Social Security COLA

The annual Social Security cost-of-living adjustment (COLA) is based on CPI-W, the index used under the statutory formula. SSA says the adjustment compares the CPI-W for the third quarter of the current year with the third quarter of the last year a COLA was determined. The 2026 COLA was 2.8%, based on third-quarter 2025 CPI-W compared with third-quarter 2024; it applied to December 2025 benefits payable in January 2026. See SSA’s COLA and wage-indexed amounts information and the Federal Register notice for 2026.

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These figures answer different questions. The 2.8% COLA is an annual adjustment calculated from CPI-W under the official formula. TSCL’s 13.7% figure is a retrospective estimate of how its selected-item index changed relative to CPI-W over a decade. A COLA is not intended to track each recipient’s personal household inflation.

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Why different inflation indexes can produce different results

CPI-W is the official index for calculating Social Security COLAs. SSA has also discussed CPI-E, an experimental index focused on people aged 62 and older. Different indexes use different populations and spending weights, so they can show different price changes. SSA has noted limitations in CPI-E, including a smaller expenditure sample and a population that does not match all Social Security beneficiaries. See SSA’s explanation of Social Security COLAs and the consumer price index.

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Changing the index used for COLAs would be a policy choice, not a correction that automatically follows from TSCL’s estimate. SSA’s 2024 actuarial presentation illustrates that adopting an alternative index could change benefits over time and affect program financing; those figures are policy scenarios, not enacted rules or measured losses. The presentation is available from the SSA Office of the Chief Actuary.

How to interpret the headline figure

  • It is a study estimate: The 13.7% figure is TSCL’s result from its 70-item index, not an official SSA statistic.
  • It is a decade comparison: The reported comparison covers 2016 to 2026, not one year’s change or a forecast.
  • It is not universal: Individual households may face higher or lower cost increases than either TSCL’s index or CPI-W.
  • It is not the same as a benefit cut: The estimate concerns purchasing power relative to prices in TSCL’s index; it does not mean nominal benefit checks fell by 13.7%.

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