Social Security is a widely popular program and the majority of Americans want to make sure it’s around for future generations. In fact, a survey conducted by Nationwide found overwhelming support for improvements to Social Security.
The Motley Fool looked into Social Security ideas such as taxing higher income workers more, eliminating the cap on payroll taxes, and means-testing benefits and whether these ideas stand a chance of happening. Hands down, the most popular choice is recalculating the annual Social Security cost-of-living adjustment — and that’s a change that could be easily enacted.
New COLA Needed
Nearly 90% of people surveyed said they support changing how Social Security’s cost-of-living adjustments (COLAs) are calculated. COLAs were originally put in place to make sure benefits kept up with inflation. But that hasn’t happened. Over the past 20 years, benefits have actually lost about 30% of their buying value.
Right now, COLAs are based on price changes tracked by the Consumer Price Index for Urban Wage Earners and Clerical workers. Senior citizens have vastly different spending habits than younger working people. That’s why many Americans are now calling for Social Security to use the Consumer Price Index for the Elderly to calculate COLA. It more accurately reflects the unique expenses facing retirees, such as high healthcare and medical expenses.
Social Security Expansion Act Is the Solution
Guaranteeing that every retired worker receives adequate Social Security benefits and a fair cost-of-living adjustment (COLA), is a priority for The Seniors Trust. This grass-roots non-profit is working diligently to get Congress to pass the Social Security Expansion Act. This landmark piece of legislation would use the Consumer Price Index for the Elderly to calculate Social Security COLAs, finally providing retirees with a more realistic COLA. This bill would also increase benefits by about $65 per month and secure the long-term solvency of the Social Security program, ensuring it is here for today’s retirees and tomorrow’s.
If you want to join the overwhelming majority of Americans who agree Social Security needs to be improved, please consider signing our petition to Congress.