|
How Big A COLA Cut?
The cumulative effect of changes that the government has made to the Consumer Price Index (CPI) since 1995 is currently estimated to be between 0.7 to 0.8 percentage point per year. The financial impact compounds over time. The following chart illustrates the impact of a 0.8 percentage point reduction.
|
Starting Benefit in 2002* |
$1,556 |
$874 |
$722 |
|
Estimated 10-year benefit cut |
$9,536 |
$5,356 |
$4,425 |
|
Estimated average annual cut over 10 years |
$953 |
$535 |
$442 |
|
Estimated annual amount cut by 2012 |
$1,902 |
$1,068 |
$882 |
|
Estimated monthly cut by 2012 |
$158 |
$89 |
$73 |
*Benefit amounts and cuts shown are estimates. Actual amounts would vary based on your benefit and future economic conditions.
You can petition your Congressional representative to support H.R. 2035, "The Consumer Price Index for Elderly Consumers Act" by signing our online petition.
Source: "2002 COLA Study: Impact of 0.8 Percentage Point Change," Mary Johnson, The Social Security and Medicare Advisor, January 15, 2002.
March 2002
|
Legal Statement |
Contact Us
Copyright © 2007 The Senior Citizens League | 703-548-5568
| 909 N. Washington St. #300, Alexandria, VA 22314
All Rights Reserved
|
|
