Big COLA Coming – What You Need to Know
Kailey Hagen acknowledges that seniors are poised to get a large cost of living adjustment (COLA) effective in January 2023. But she cautions against calling it a raise, as folks only keep pace rather than get ahead of inflation. Hagen notes seniors need do nothing to get the increase and that the exact amount will be known after third quarter data is in. COLAs are granted as a percentage of everyone’s individual current checks, not a certain dollar value, meaning the increase people get might be different from their spouse’s or neighbor’s increase. [Editor’s note: AMAC has suggested altering this feature to preserve the program’s long-term solvency. See below] Hagen’s full article is here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved with no tax increases by changing cost of living adjustments, the retirement age, and delayed credits. AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking selected portions of bills introduced by former Rep. Johnson (R-TX) and current Rep. Larson (D-CT) and merging them with the Association’s own research. One component is Social Security PLUS, a voluntary plan to allow all earners to have more income at retirement. This component is intended to appeal especially to younger workers. AMAC is resolute in its mission that Social Security be preserved and modernized and has gotten the attention of lawmakers in DC, meeting with a great many congressional offices and their staffs over the past several years. Read AMAC’s plan here.