MYTH:
“Chained CPI would cut the 2014 Social Security cost-of-living increase of 1.5 percent to 1.2 percent.” – Robert Romasco, president of AARP
FACT:
If the more accurate chained CPI was used to determine the 2014 cost of living increase, seniors would see a 1.7 percent increase as opposed to this year’s increase of 1.5 percent. What does a 1.7 percent increase mean? On average, that is an extra $21.60 each month for seniors to use on groceries, bills and medicine.
| Initial* estimate for the third quarter of 2012: | 131.910 |
| Initial estimate for the third quarter of 2013: | 134.096 |
| COLA using initial 2012 versus initial 2013: | 1.7 percent |
*According to the Congressional Budget Office, using the initial measurements incorporate updates to previous released measures through past months’ interim and final releases.
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