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Social Security COLA Cut Will Chain Many Seniors and People with Disabilities to a Poorer Life
Some politicians in Washington are preparing to cut your Social Security COLA for good–even after two years without getting a COLA. This COLA cut has an obscure name: chained-CPI. But it would do real damage by changing the formula used to calculate the COLA. Here’s what you need to know about it:
- It’s a benefit cut. It’s not some minor technical change to the COLA. It’s a real cut to the benefits you have earned every year into the future.
- It cuts benefits more with every passing year. After 10 years, your benefits would be cut by about $500 a year for the average retiree. After 20 years, your benefits would be cut by about $1,000 a year.
- It hits today’s Social Security beneficiaries. Politicians like to say that their cuts to Social Security will not affect those getting benefits today. Wrong! Switching to the chained-CPI would hit all current beneficiaries.
- We need a higher COLA, not a lower one. The current COLA is not large enough–it does not adequately account for large health care cost increases faced by seniors and people with disabilities.