Another attempt is being made in Congress to change the COLA formula for Social Security to pay higher benefits.
Another attempt is being made in Congress to change COLA increases to use the CPI-E in an effort to help retirees. Is this a good idea?
The Social Security Administration states that the goal of a cost-of-living adjustment is to ensure that the purchasing power of seniors is not eroded by inflation, but with no COLA planned for 2016, does that mean that seniors do not have to worry about inflation? As the author notes, it depends on how inflation is measured.
For the first time since the current system was put into place in 1975, the annual COLA adjustment is unlikely to appear in your paycheck next January. Here’s why.