Tag: CPI-W
The brief’s key findings are: Recent commissions have proposed a “chained” consumer price index to adjust Social Security benefits. The chained index, which allows spending patterns to shift as prices change, would rise more slowly than the current index. But the current index likely understates the inflation faced by the elderly, and the low-income elderly…
Two prominent commissions recently proposed introducing a “more accurate” consumer price index (CPI) to adjust Social Security benefits each year. This “more accurate” measure is projected by Social Security’s Chief Actuary to rise about 0.3 percentage points more slowly than the current index and thus would likely result in lower cost-of-living adjustments (COLAs) for seniors. But…