14% increase to Social Security, including retirement, disability, SSDI, survivors, SSI, and VA beneficiaries. I have all the details and what they’re saying now right here in the video, so let’s get right into it. Now in this topic, I want to discuss the details of the new report that was just released suggesting a 14% raise for millions of Social Security beneficiaries. The report goes on to talk about a variety of different changes that would need to take place, as well as some staggering numbers that have been negatively impacting Social Security benefits for the last 20 years or so.
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All right, thanks again. Let’s jump into it and talk about all the details of this report that was just released suggesting a 14% raise, which by the way, Social Security beneficiaries have actually seen a 14% raise back in the early 80s. In fact, 1980, there was over a 14% raise that was implemented. Could you imagine what would that do for you right now if you got a 14% raise to your benefit? I know we all need like a 50% or realistically like a 100% raise to benefits right now, but even a 14% raise would be pretty nice.
I think that would be very welcome to buy a lot of people. Well, let me tell you the details behind this report that was just released and what they’re actually suggesting with it. And realistically, the details of this report are not all that too far-fetched. Let me tell you the details about this because it actually makes a pretty good point here. So we all understand right now inflation is very high, right?
This is obviously not a new story. We’ve all been talking about it for a very long time. We know that inflation is very high. Everything is very expensive and realistically getting more expensive, well anticipated. Well, what is anticipated between now and the next year here is that inflation will continue to rise at least for a while, and likely probably not go down for a couple years even.
There’s actually economists and experts that are watching this right now suggesting that this high inflation will be around for a couple of years. Let’s hope not because this is not a good situation that’s going on right now. However, as a result of this, coupled with high inflation and a simple change to one way that the annual cost of living adjustment is calculated for Social Security beneficiaries with all of this together in 2023, this could result in a 14% raise to monthly benefits. And again, which would also be implemented in 2024 because we know how the system works, right? Inflation goes up during one year, they announce the Cola, and then it goes into effect the following year.
But again, this is suggested in 2023. But let me tell you the details behind this, because there are a lot of pieces of legislation that are currently in Congress right now that are actually suggesting this simple change to Social Security. So get this. Right now, the annual cost of living adjustment is calculated off of the CPIW, which is the Consumer Price Index for urban wage earners and clerical workers. We know this, we’ve talked about it before.
However, there’s many different pieces of legislation in Congress right now where they want to change this to the CPI Consumer Price Index for the Elderly. Now, here’s the details about this. The CPI e tracks the actual changes in price for those individuals aged 62 and older. So it puts a heavy emphasis on all the spending and a lot of different categories that people aged 62 and older typically spend their money like health care and a variety of other changes, right? So those are the CPI is actually tracking the spending of people aged 62 or older, which better reflects the actual living expenses of those individuals living on a fixed income benefit like Social Security, right?
And again, it also reflects the details of what actually would be implemented as a raise for people like SSDI. Beneficiaries and SSI. I can tell you this much though. Even if you’re somebody receiving, for example, SSDI or SSI or VA or something like this, and you’re not 62 or older, that’s okay. Because here’s the thing.
If they change the way that the Cola is calculated from the CPIW to the CPI, it would actually be advantageous for all. Beneficiaries so it doesn’t really matter if you’re 62 or older. I’m just saying that is how the CPIE actually tracks expenses for fixed-income beneficiaries or somebody around that age range. So here’s the details about it though. Over the last roughly 20 or so years, 20 to 22 years or so, expenses for this group of people age 62 or older has increased by 130%.
That’s crazy. That is crazy. Crazy time right there. So just in the last 22 years or so, expenses for the group, again, 62 or older has increased by 130%. Meanwhile, guess how much the benefits have increased over that same period of time as a result of the Colas?
64%. That’s it. So in the same period of time, the same 22 years span of time, the Cola has raised benefits by 64%. Meanwhile, expenses has increased by 130%. That doesn’t make any sense.
So there’s a 66% deficit. In other words, the difference between 130% increase in expenses up to the 64% increase in benefits because of the Cola, there’s a difference of 66%. That just evaporated. That’s it. 66% gone, right?
Well, here’s the thing. It all comes down to this two simple things. Number one, inflation continued to be very high through the course of 2023, resulting in a big Cola in 2024. Now, again, I know this is a long time out, but again, a lot of times when we’re talking about big important programs like Social Security, a lot of times there’s a very long lead time on these programs, right? We got to look way out into the future and we need to forecast way out because that’s generally how these programs work.
Big programs that impact and influence and reach millions of people, tens of millions of people in the case of Social Security is something you got to watch very closely a long time out because any little change, any little adjustment, it impacts millions of dollars, well, realistically billions of dollars in this case, right? We’re talking about a lot of money just from simple little changes, tens of a percent relays into billions of dollars. So it’s a lot of money that we’re talking about. But anyway, so what it comes down to is inflation continued to increase and or hold steady for roughly the next year or so. On top of that, one simple change out of Congress to change the way that the Cola is calculated from the CPIW to the CPI would actually bring advantageous results for millions of Social Security beneficiaries.
And again, all the beneficiaries I mentioned earlier yes, including retirement Ssdis survivors, SSI, and VA beneficiaries, all of which are impacted by the annual cost of living adjustment. That one announcement that we all wait for each and every year out of the Social Security Administration that impacts about 70 million beneficiaries. All of those benefits I just mentioned a few seconds ago. So yes, it all impacts those. So one simple change out of Congress from the CPIW to the CPI, and also with persistent inflation through 2023, which is highly anticipated as of right now, could translate into a 14% raise which by the way I said it earlier, back in 1980, good old 1980, there was a 14 3% raise to benefit.
So it’s not unheard of Okay? This is a thing. It can absolutely happen and there’s no reason that it couldn’t happen again. And like we’ve been talking about for a very long time now, with inflation as high as it is, fixed income beneficiaries should be rewarded.
Fixed income beneficiaries should be properly compensated for the time and realistically for the destruction of your monthly benefits as a result of depletion of purchasing power. Right? We’ve talked about all this before but that is what inflation is doing. Inflation is rapidly depleting your purchasing power of your monthly benefits and as a result of that we should be getting a big old benefit raise because of inflation. But unfortunately we understand right now that the annual cost of living adjustment is calculated once per year to adjust for inflation.
Not a good plan. We’ve talked about it doing adjusting quarterly. That would be a much better plan to adjust the Cola quarterly and actually reflect real inflation in real-time or at least less delayed than a twelve-month delay but rather actually adjusting it on a three-month basis. Like I’ve said before, highly doubt that that’s actually going to happen but it’s just another idea out there today that would actually better reflect the actual living expenses and real inflation for fixed income beneficiaries. I don’t know.
I like the plan but guess what? They’re not going to do it. You know why? Because the benefits would be increased on a pretty substantial basis, on a regular basis as well. And then if we’re worrying about the solvency of Social Security now we’d really be worried about the solvency of Social Security then because benefits would continue to increase on a
pretty regular basis, which again would be really, really nice, but highly unlikely.
So anyway, I wanted to bring this report to you. I just got done reading through it and I thought, you know what, this is a very important one. I want to bring it to your attention because there are a lot of moving parts here. Things are changing rapidly and again, anytime that we talk about or any time that I come across any information that impacts your monthly benefit or may result in an increase or raise an expansion, anything like that, or anything else revolving around money, checks, programs, raises to benefits, or anything else along those lines. Of course, I want to bring it to you right away so you can stay tuned with what is actually going on and also impacting your very, very sorry, very, very important monthly benefit that so many people rely on.
So anyway, Share the topic with your friends, send me social media I’ll catch you on the next topic. bye