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New Social Security Proposal Could Leave 80% Worse Off Analytics Table
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About New Social Security Proposal Could Leave 80% Worse Off
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Feeling unsure about your financial future? My team at Root Financial can help: https://learn.rootfinancial.com/erin A new Social Security COLA proposal could mean smaller annual increases for roughly 80% of beneficiaries. How would a flat-dollar cost-of-living adjustment affect your monthly benefit, retirement income, and purchasing power over time? In this video, we explain the proposal examined by the Committee for a Responsible Federal Budget (CRFB) and the concerns raised by AARP. Instead of applying the annual inflation adjustment to each personâs Social Security benefit, this approach would give everyone the same dollar increase based on a benchmark benefit. Using examples starting at $800, $2,000, and $3,000 a month, we compare the current Social Security COLA formula with the proposed flat-rate adjustment. Youâll see who could gain, who could receive smaller increases, and how those differences could affect purchasing power over a 10-, 20-, or 30-year retirement. We also explain: - Why a bigger Social Security check can still buy less. - How the proposal could reduce Social Securityâs long-term funding shortfall. - The difference between scheduled benefits and payable benefits when discussing Social Security trust fund depletion. - Why a smaller benefit does not necessarily mean greater household financial need. - How changing retirement spending could affect the impact on your budget. If youâre researching Social Security benefit cuts, how COLA is calculated, inflation protection in retirement, or how to plan for changes to Social Security, this breakdown puts the numbers in context. 00:00 - Intro: Can Both Things Be True About Social Securityâs COLA? 01:08 - Itâs a Proposal, Not a Law (Who Is the CRFB?) 01:33 - How the COLA Works Today vs. the Flat Dollar Proposal 03:20 - Who Gains and Who Loses: $800 to $3,000 Checks 04:42 - What Happens After 10, 20, and 30 Years 07:39 - Who Would Benefit From the Flat Dollar Formula 08:36 - AARPâs Historical Example: Retiring at 65 in 1998 10:40 - Why Consider It? The Social Security Funding Gap 11:50 - Does a Smaller Check Always Mean Greater Need? 14:03 - Scheduled vs. Payable Benefits: âBetter Off Compared to What?â 15:04 - Why It Only Delays Trust Fund Exhaustion by Two Years 16:58 - How Should We Judge This Proposal? (Final Thoughts) 17:46 - Bloopers Connect with me on LinkedIn for charts & daily retirement insights: https://www.linkedin.com/in/erintalksmoney/ Some of my favorite books: https://amzn.to/3KF3tlr Camera & equipment I use: https://amzn.to/3Z20lof Join the family & subscribe to my channel here: https://www.youtube.com/c/ErinTalksMoney Thanks for watching, I appreciate you! Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship with Root Financial. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation. The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal. Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate and should not be considered testimonials or endorsements.
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