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CPI-E & Social Security’s Cost Of Living Adjustment

Thursday, November 18, 2010 - 7:08 AM
Social Security cost of living adjustments are currently tied to the CPI-W which often doesn't reflect the inflation that seniors experience. This NY Times Bucks blog post reviews this issue:
So isn’t it only fair that cost-of-living adjustments for retirees be based on figures that are actually relevant to retirees? And if we did use such a measure, would retirees have received an inflation adjustment?

The article goes on to review the CPI-E which is intended to more accurately reflect inflation from seniors' perspectives. Unfortunately, the deficit-reduction commission is proposing to move the other way. They're proposing another index that would rise even less than CPI-W.
3
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Thursday, November 18, 2010 - 8:05 PM
Not sure how we can trust anything coming out of Alan Simpson's mouth. After all, he just wants to help the "little" people. I guess I am still angry with the 1983 "FIX" when we were told me must have our FICA taxes nearly doubled in order to pay for our grandparents benefits, save to make sure our parents would have benefits and to make sure there would be enough for our own retirement and for that of future generations. All this was done as federal income taxes were cut, and the deficit doubled and long term debt as a % was the highest of any president.  Isn't it ironic that the only 2 presidents with a degree in economics actually had the worst deficits.
1
Ally6770Ally6770912 posts since
Jan 16, 2010
Rep Points: 2,655
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