Lawmakers propose switching Social Security COLAs to CPI-E amid insolvency concerns
Updated
Updated · The Globe and Mail · Apr 28
Lawmakers propose switching Social Security COLAs to CPI-E amid insolvency concerns
11 articles · Updated · The Globe and Mail · Apr 28
The proposal would base cost-of-living adjustments on the Consumer Price Index for the Elderly (CPI-E), which better reflects senior spending, rather than the current CPI-W index.
Analysis shows that using CPI-E would have resulted in larger COLAs in eight of the past ten years, increasing benefits for retirees but also accelerating Social Security trust fund depletion.
Despite advocacy, the change is unlikely while insolvency looms, so beneficiaries will continue receiving COLAs based on CPI-W, which may not fully cover rising living costs for retirees.
If the CPI-E better reflects senior costs, why does its adoption remain stalled?
With Social Security facing a 23% cut by 2032, how can I protect my retirement income?
Could capping benefits for the wealthiest retirees help save Social Security for everyone else?
Could my healthcare costs in retirement really consume my entire Social Security benefit?
Beyond raising taxes, what innovative solutions could secure Social Security's long-term future?
Why do my healthcare premiums often rise much faster than my annual benefit increase?