The Impact of Switching from CPI-W to CPI-E on Social Security COLA Benefits
Sunday, 12 May 2024, 18:00
Why Changing the Social Security COLA Calculation Could Increase Senior Benefits
President Biden and advocates are pushing for a change in the COLA calculation method, favoring the Consumer Price Index for the Elderly (CPI-E) for better reflecting senior spending habits.
The CPI-W vs. the CPI-E
- The CPI-W represents a narrow index compared to the CPI-E, potentially resulting in lower COLA benefits for seniors.
- Using the CPI-E could have increased average senior income by $2,689.20 over the last decade, showcasing the potential impact of this adjustment.
Conclusion: Transitioning to the CPI-E may enhance short-term benefits for seniors but could pose challenges to Social Security's long-term sustainability, requiring careful consideration and planning.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.