Generations United's Reponse to Possible Social Security Cuts
Photo: Pete Souza | Official White House Photo
Today, news outlets announced that President Obama plans to propose significant reductions in Medicare spending and for the first time will offer to tackle the rising cost of Social Security.
Experts are speculating that the President is considering Social Security cuts to the Cost of Living Adjustment (COLA). This would be done by changing the formula used to calculate the annual COLA to the so-called chained-CPI (Consumer Price Index). This technical change would cut the benefits people have earned – whether they receive Social Security now or in the future. After ten years, average retiree benefits will be cut by about $600 a year, and after 20 years, they will be cut by about $1,000 a year.
Generations United is focused on protecting Social Security and Medicare for the millions of children, families, and retirees that rely on these critical programs. Furthermore, Social Security did not contribute to the deficit, and it should not be cut to reduce a deficit it did not cause. Generations United urges Congress to balance the budget in a responsible way that doesn't do so on the backs of our nation's most vulnerable citizens.
Generations United believes the best way to invest in and protect our nation’s most vulnerable citizens is to strengthen Social Security, not cut it. Social Security plays a critical role in providing economic security and indispensable protections for children, families, and retirees. Social Security provides vital support for children, in addition to older adults, covering 98 percent of all children in the event of the death or disability of a caregiver.
In order to improve Social Security for future generations, Generations United continues to advocate for one low-cost recommendation that would strengthen Social Security for future generations: reinstating the student benefit. Restoring the Social Security student benefit would offer students whose parents are deceased and disabled the support they need to become the educated workforce our country’s economy needs. To read more about our recommendation, download our publication Social Security: What's at Stake for Children, Youth, and Grandfamilies.