In retirement, many seniors rely on Social Security benefits to help make ends meet. However, high inflation, increases in the cost of living, and other economic factors can put a strain on seniors’ budgets.
What is ‘Social Security 2011: A Sacred Trust’?
One new proposal could adjust how benefits are calculated, which could lead to more money in seniors’ pockets. U.S. Rep. John Larson’s proposal, titled “Social Security 2011: A Sacred Trust,” would use the Consumer Price Index for the Elderly (CPI-E) to calculate benefits. This would be a change from the current system, which uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The CPI-E takes into account the fact that seniors have different spending patterns than other groups, and therefore their costs may go up at a different rate. For example, seniors are more likely to spend a larger portion of their income on health care, which has been rising at a faster rate than other items.
This bill includes several other provisions, including an increase in the minimum benefit, which would help those seniors who have worked hard their whole lives but haven’t been able to save much for retirement. Finally, it would remove the cap on the payroll tax, so that high-income earners would pay the same rate as everyone else.
The Seniors Center is Fighting to Save Social Security
This bill contains several of the changes that we at The Seniors Center want to see in our social safety net. Learn more about our plan to save Social Security today. We invite you to add your name to our online petition to make your voice heard—and follow us on Twitter and Facebook so you never miss a post!