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Are retirees getting a pay cut every year?

Social Security benefits are reviewed each year and, based on the Consumer Price index, usually adjuster upward. In reality, though, these Cost of Living Adjustments (COLAs) have not kept pace with inflation in recent years. According to Brandon Buckingham, vice president and national director of advanced planning for Prudential Annuities, the method of calculation skews the process even further since CPI has two sub-categories: CPI-Workers (CPIW) and CPI Elderly (CPIE), both of which underweight health-care and housing costs, the two biggest expenses for the elderly. Read why the financial experts say retirees are getting a pay cut every year and what you can do to plan for it. Read article here…

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