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December 06, 2012 at 15:05 PM EST
Small Changes in the COLA Index Can Have a Major Impact on Your Retirement Plan
As we get closer to the fiscal cliff more politicians have been discussing how to reduce the coming crushing burden of entitlements. That means Medicare and Social Security are in the crosshairs. Of course members of Congress do not want to be the ones who actually cut anything for fear of losing votes. But one way they can tap into Social Security payments without calling it a cut is to change how Social Security payments are indexed to inflation. Currently Social Security payments increase with the rate of the Cost Of Living Adjustment (COLA) index. The COLA index used ...
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