Some in Washington are pushing a budget proposal that, by cutting Social Security benefits, would unfairly hurt retirees. Called the “chained CPI,” the proposal would change the yearly cost-of-living adjustment (COLA) for Social Security, reducing benefits by $127 billion over the next 10 years.
The benefit cut would start now and grow over time, making it increasingly hard for seniors to get their hard-earned benefits.
Washington should address the nation’s budget challenges in responsible ways, not by cutting Social Security benefits for today’s seniors and future generations.
Here are the top five reasons why the chained CPI would hurt seniors.
1. The chained CPI is a benefit cut. The chained CPI is a significant benefit cut, not a “technical change,” as some in Washington would like you to believe.
2. Cuts would get deeper every year. The chained CPI benefit cut would start now and get bigger with every passing year, costing seniors, veterans and our nation’s most vulnerable thousands of dollars over their lifetimes.
3. The chained CPI would cut benefits for today’s seniors. Most politicians promised during the 2012 campaign not to cut Social Security for current seniors. The chained CPI would break that promise, cutting benefits that today’s seniors have earned through a lifetime of hard work.
4. The chained CPI is less accurate for seniors. The chained CPI varies from the current COLA formula by assuming that when the cost of something you normally buy goes up, you will substitute a lower-cost item. This theory falls short because many seniors and veterans spend much of their money on basic goods such as prescription drugs, utilities and heath care — which don’t have lower-cost substitutes.
5. Social Security needs its own discussion. Americans deserve a separate, national conversation about how to protect Social Security for today’s seniors.
Also of Interest
- The chained CPI explained
- 5 reasons the chained CPI is bad for Social Security
- Join AARP: Savings, resources and news coverage
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What the Heck Is Chained CPI? Learn about the budget proposal that could cut the value of your Social Security benefits.