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Discussing the Inadequacy of Social Security’s 2023 COLA
The 8.7% cost-of-living adjustment scheduled to hit benefit checks in January is certainly appreciated, but in reality, only for its ability to recover some of the ground lost to the ravages of inflation. In a post on islandernews.com, journalist Hillard Grossman offers perspective on the shortcomings associated with the CPI-based COLA calculation, using comments from several sources (click here to read Grossman’s post)
As we here at the AMAC Foundation’s Social Security Advisory Service often explain, it’s no secret that the CPI (CPI-W, actually) used to determine Social Security’s cost-of-living adjustment is generally ineffective in measuring the price increases that most significantly affect seniors. The weighting is such that the category of medical costs, for example, does not really reflect the proportionate costs faced by seniors.