Chained CPI: How Washington Is Likely to Slice Social Security Benefits

Date: Dec 18 2012

Filed under: Retirement, Government, Money and Politics

An arcane change to the way Social Security’s annual Cost of Living Adjustments, or COLAs, are calculated may be part of a deficit reduction deal between President Barack Obama and Congress. The revision, known as the “chained CPI,” could cut the size of Social Security recipients’ benefits starting in 2014.

You could feel a financial pinch if COLAs get tweaked this way, especially if you’re fortunate enough to live for decades in retirement.

Chained CPI and the Deficit

Chained CPI: How Washington Is Likely to Slice Social Security Benefits originally appeared on DailyFinance.com on 2012-12-18T12:16:00Z.

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