Understanding Social Security Projections

What is the primary purpose of the Social Security projections discussed in the video?

• To calculate tax rates

• To inform about potential changes in benefits

• To predict stock market trends

• To provide entertainment

What does CPIW stand for?

• Consumer Price Index for Workers

• Consumer Price Index for Urban Wage Earners and Clerical Workers

• Cost Price Index for Workers

• Consumer Price Index for Wealthy Individuals

Why might the CPIW not accurately reflect the costs faced by retirees?

• It focuses on urban workers' spending patterns

• It includes too many luxury items

• It is based on outdated data

• It only considers rural areas

What is the projected COLA increase for 2026?

• 1.5%

• 2.7%

• 3.5%

• 4.0%

How much is the average retired worker expected to gain from the 2026 COLA?

• $150

• $20

• $50

• $100

What is a potential consequence of the higher standard deduction for seniors?

• Increased Social Security reserves

• More benefits for younger workers

• Earlier depletion of the Social Security Trust Fund

• Higher tax rates for seniors

What was the average COLA from 2001 to 2020?

• 4.5%

• 2.2%

• 1.5%

• 3.0%

What is one suggestion for individuals to manage their finances better?

• Ignore inflation rates

• Avoid budgeting

• Review insurance policies for better rates

• Spend more on luxury items

Why is staying informed about Social Security changes important?

• To make impulsive financial decisions

• To increase spending

• To ignore market trends

• To adjust and plan finances effectively

What is the role of the Senior Citizens League in relation to COLA forecasts?

• They provide accurate forecasts

• They ignore inflation data

• They focus on youth benefits

• They set the official COLA