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What's Ahead For Social Security In 2013

Thursday, January 10, 2013 - 1:24 PM
From MarketWatch: 
If there’s any good news for retirees and near-retirees in the coming debate over government spending and the U.S. debt ceiling, it’s that lawmakers may bypass changes to the Social Security program.  

[...] If, as part of the coming deficit debate [agreement is reached] about Social Security reform, a number of observers said they expect the change to be adoption of the chained Consumer Price Index in place of the program’s current inflation measure, used to calculate annual cost-of-living adjustments or COLAs.

Adopting chained CPI would reduce about 20% of Social Security’s long-term shortfall. That’s because it cuts Social Security benefits by providing a lower annual cost-of-living adjustment.

 

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2
pearlbrownpearlbrown1,491 posts since
Nov 2, 2010
Rep Points: 6,486
1. Thursday, January 10, 2013 - 4:58 PM
"Adopting chained CPI would reduce about 20% of Social Security’s long-term shortfall. That’s because it cuts Social Security benefits by providing a lower annual cost-of-living adjustment."

Through the 'substitution' method. If ground beef becomes too high in price, in order to restrict cost-of-living adjustments, dog food will be the appropriate substitute for senior citizens. Nothing but the best for our elderly.

Of course, the politicians will run smack into two big lobbyists if they try to implement this. Not only AARP but also the organizations representing the retired military of this country who's members will also be affected by a change in the cost-of-living computation.
2
ShorebreakShorebreak2,700 posts since
Apr 6, 2010
Rep Points: 14,633
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