I had previously written about cost of living adjustments (COLAs) in retirement. It is a hard subject since there are many ways to estimate this.
The Bureau of Labor Statistics (BLS; website bls.gov) has developed several tools to estimate this. They developed the Consumer Price Index (CPI) which approximates a cost of living index. But this is not simple to estimate. You might want to look at the BLS FAQ for a fuller explanation of the these indexes.
I had previously (see above) argued that the current efforts to move retirement income (Social Security. military and civilian federal retirement, and other retirement programs) to a chained CPI is mistaken since a chained CPI is lower than the CPI-W currently used but the increase in cost of living in the elderly (CPI-E) is actually higher.
Strengthening Social Security Act of 2013 (S. 567 sponsored by Senator Tom Harkin and H.R. 3118 sponsored by Representative Linda Sanchez) is presently bottled-up in committee in both houses of Congress. The bill bases Social Security COLAs based on the Consumer Price Index for the Elderly (CPI-E). The bill makes other changes as well to strengthen Social Security and increase benefits.
Funding and benefits in Social Security and other retirement programs involves some complicated issues and not resolving problems just makes them larger. So a discussion about possible solutions is important.
Since the bills are in committee, I suggest sharing your opinion with your Senators and Representative. If there seems to be enough public interest maybe these bills will actually face discussion and votes in the full Senate and House.
Now, you have some great and valid points there, and I want to thank you for taking the time to talk to the American people who are dealing with financial struggles.
We must stand up for our seniors and veterans — in New York and across the country — and urge our lawmakers to reject any cuts to the benefits on which they rely, including raising the retirement age or slashing cost of living adjustments.
Thanks for your comments. Social Security has many long-term problems and they just get worse as time passes. My belief is that the problems can and should be solved without benefit cuts.