Social Security's Trustees Underline Urgent Need for COLA Reform
The Faulty COLA Formula and Its Impact on Retirees
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is a flawed measure for determining Social Security raises, as it does not accurately reflect seniors' spending habits.
Since 2000, Social Security benefits have lost around 36% of their purchasing power, mainly due to inadequate annual COLA adjustments.
Social Security's Financial Future and the ALACK of Viable Solutions
The 2024 report from Social Security's trustees signals impending trust fund depletion by 2035, making substantial COLA improvements improbable.
Lawmakers are unlikely to implement larger COLAs or benefit adjustments, with potential future reforms focusing on increasing retirement age instead.
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.