Wouldn’t you like a guaranteed raise each year or a guaranteed increase in a pension or even your investments?
🏋️♀️More than 62 percent of retirees think that Social Security cost of living adjustments (COLA) need a guaranteed minimum, according to a new survey from The Senior Citizens League (TSCL).
The survey was was conducted from mid – January through April 20, 2021 and had 1,125 participants. According to TCSL, through the end of December 2020, inflation as measured by the CPI-W — the index used to calculate the annual COLA — was just 1.4% for the year. “But as of the end of March 2021, the CPI-W was more than 3 percent higher than this time a year ago,” Johnson said.
The Senior Citizens League is working with members of Congress to introduce legislation that would strengthen Social Security benefits by tying the annual COLA to the Consumer Price Index for the Elderly (CPI-E), and by providing a guaranteed minimum COLA of no less than 3 percent.🏋️♀️
The above was reported on myfederalretirement.com
Using the Committee For a Responsible Federal Budgets Social Security Reformer tool which projects the impact on SS funding of various scenarios, we find that using the CPI-E increases the 75-year shortfall by 14%. Unfortunately the tool has no option for a guaranteed 3% COLA.
I hardly think strengthen is the appropriate word to explain changes that weaken the solvency of the program.