AARP to Congress and the President: Don’t Cut Social Security

http://www.aarp.org/about-aarp/press-center/info-12-2012/AARP-to-Congress-and-the-President-Dont-Cut-Social-Security.html?intcmp=HP-spot1D

Washington, DC – AARP Executive Vice President Nancy LeaMond today reiterated the Association’s opposition to including a cut to the benefits of current and future Social Security recipients as part of a year-end budget deal via a formula change known as Chained CPI. She offered the following statement:

“Adopting the chained consumer price index for Social Security benefits will take $112 billion out of the pockets of current Social Security beneficiaries in the next 10 years alone, and is neither fair nor warranted.

“Social Security is currently the principal source of income for nearly two-thirds of older American households, and roughly one third of those households depend on Social Security for nearly all of their income. Half of those 65 and older have annual incomes below $18,500.  Every dollar of the average Social Security retirement benefit of about $14,800 is absolutely critical to the typical beneficiary. 

“The Chained CPI is a stealth benefit reduction that will compound over time and cut thousands of dollars in retirement income for current beneficiaries.  A typical 80-year-old woman will lose the equivalent of 3 months worth of food annually. The greatest impact of Chained CPI would fall on the oldest, eventually resulting in a cut of one full month’s benefit annually.  This dramatic benefit cut would push thousands more into poverty and result in increased economic hardship for those trying desperately to keep up with rising prices.”