Retirees relying on Social Security benefits know the system needs significant reform. It’s estimated that since 2000, the buying power of Social Security payments has declined by 40 percent.
The Motley Fool reports members of Congress are concerned the combination of rising inflation and an aging population makes changes to Social Security an absolute must.
More observers are starting to agree that two major changes are needed. First, the way the annual cost-of-living adjustment (COLA) is determined must be revised. Currently, the COLA depends on the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). That measure doesn’t take into account the costs that hit seniors the hardest: energy and healthcare.
Legislators want to create a new measure: the Consumer Price Index for the Elderly (CPI-E,) which will better meet the needs of retirees.
The other big change needed is raising the income level taxed by the 12.4 percent payroll tax paid by employers and workers. Right now, the tax ends at $147,000. Legislation has been drafted to raise that to $250,000, which will bring in more tax dollars to keep Social Security going.
Council of Seniors Wants Stronger Benefits for You
A more accurate COLA will better provide what’s needed. Here at Council of Seniors, we’ve been working diligently to get Congress to pass The SAVE Benefits Act. Passing this bill can help compensate COLAs that haven’t kept up with inflation in recent years to return $581 to seniors.
Please sign our petition right now to show your support!
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