FACT: Chained CPI Would Result In a Larger COLA Increase for 2014
“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
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.