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AARP: Don’t Shrink Social Security’s Cost-of-Living Adjustment
Posted By Nancy A. LeaMond On October 30, 2013 @ 11:21 am In Where We Stand | Comments Disabled
The annual Social Security cost-of-living adjustment (COLA) is critically important to the financial security of the nearly 58 million Americans receiving benefits. By providing protection against inflation, the COLA helps beneficiaries of all ages maintain their standard of living, keeping many from falling into poverty . The COLA announced today is vital to millions, but at an average of just $19 per month, it will quickly be consumed by the rising costs of basic needs such as food, utilities and health care.
Some in Washington, though, would make this small COLA even smaller by including the Chained CPI in a budget deal. The Chained CPI would further lower the COLA for Social Security and veterans benefits with cuts that would start now and grow larger every year. Under Chained CPI, the modest 1.5 percent COLA announced today would be reduced, putting increasing strain on millions of beneficiaries struggling to keep up with expenses.
Shrinking the COLA could also negatively impact our still-fragile national economy, since every dollar of Social Security benefits generates about two dollars of economic activity. Recent research by the AARP Public Policy Institute  calculated that spending of Social Security benefits added about $1.4 trillion in total economic output to the U.S. economy in 2012.
We know that any adjustments Washington makes to Social Security will have a profound effect on individuals of all ages, businesses and our economy as a whole. That’s why AARP  is fighting the Chained CPI and calling for a national conversation about the future of Social Security – so those who paid into the system can have a voice in the debate and so current and future generations get the benefits they’ve earned.
Additional resources on the Chained CPI, including a calculator showing how individual benefits would be impacted by the Chained CPI, are at www.earnedasay.org .
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Article printed from AARP: http://blog.aarp.org
URL to article: http://blog.aarp.org/2013/10/30/aarp-dont-shrink-social-securitys-cost-of-living-adjustment/
URLs in this post:
 Image: http://blog.aarp.org/wp-content/uploads/2012/10/240-social-security-cards-cola-2013.jpg
 many from falling into poverty: http://www.aarp.org/work/social-security/info-09-2013/social-security-impact-on-the-national-economy-AARP-ppi-econ-sec.html?intcmp=AE-BLIL-DOTORG
 Chained CPI : http://www.aarp.org/politics-society/advocacy/info-02-2013/the-chained-consumer-price-index-explained.html?intcmp=AE-BLIL-DOTORG
 AARP: http://www.aarp.org/
 www.earnedasay.org: http://www.earnedasay.org/
 Image: http://healthlawanswers.aarp.org/?intcmp=AE-EDO-LNK-HLAW-ENDART-BL-20131011
 Best-Kept Secret: Wait Until Age 70 to Take Social Security: http://blog.aarp.org/2013/10/24/best-kept-secret-waiting-to-collect-social-security/?intcmp=AE-ENDART1-BL-REL
 Social Security Calculator Shows When to Claim Your Benefits: http://www.aarp.org/work/social-security/social-security-benefits-calculator/?intcmp=AE-BLIL-DOTORG
 Shopping for health insurance? The health insurance marketplace is now open: http://healthcare.gov/?intcmp=AE-BL-ENDART3-ADV-HCGOV
 Join AARP: https://appsec.aarp.org/MSS/join/application?keycode=U9ZTPH9&intcmp=AE-ENDART3-BL-MEM
 AARP home page: http://www.aarp.org/?intcmp=AE-ENDART3-BL-HP
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