Washington policy makers, including the Senate’s Gang of Six, propose using “chained CPI” – as opposed to current Consumer Price Index – to calculate annual benefit adjustments. Unlike CPI, CHAINED CPI reflects how consumers change spending habits in response to changes in prices. The proposal is NOT a small technical fix. Chained CPI jeopardizes the economic status of the most vulnerable seniors & disabled depending on Social Security & SSI as a primary, albeit inadequate income. Adoption of chained CPI erodes basic income security. 1 in 3 seniors relies on Social Security for 90% or more of their income. For today’s Social Security recipient who begins receiving benefits at 65, chained CPI results in a $560 annual benefit cut by age 75. This amounts to a blatant reduction in SS benefits.
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