Understanding Social Security and COLA

What is the primary concern for Americans relying on Social Security as mentioned in the introduction?

• The benefits are too high.

• The benefits are not keeping up with the rising cost of living.

• The benefits are increasing too rapidly.

• The benefits are only for medical expenses.

What does COLA stand for in the context of Social Security?

• Cost of Living Adjustment

• Cost of Living Allowance

• Consumer of Living Adjustment

• Consumer of Living Allowance

Which index is used to calculate the COLA?

• Consumer Price Index for Rural Workers (CPIRW)

• Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW)

• Consumer Price Index for Retirees (CPIR)

• Consumer Price Index for All Urban Consumers (CPI-U)

What is a major criticism of the current COLA calculation method?

• It overestimates the inflation rate.

• It is based on the spending habits of workers, not retirees.

• It does not account for changes in healthcare costs.

• It is based on the spending habits of retirees.

Why might the official inflation numbers seem inaccurate to many people?

• They are only updated every five years.

• They do not reflect real on-the-ground changes and costs.

• They are based on outdated data.

• They are calculated using a different currency.

What has caused the Bureau of Labor Statistics to rely more on estimates and models for inflation data?

• Public demand for faster data

• Hiring freezes and staff shortages

• Increased funding and resources

• Technological advancements

What is one suggestion for individuals to manage potential shortfalls in Social Security benefits?

• Ignore inflation trends

• Rely solely on Social Security

• Invest in high-risk stocks

• Look for local programs that can supplement income

What is one proposed change to improve the accuracy of Social Security benefit calculations?

• Switching to a different inflation index that reflects older Americans' spending patterns

• Eliminating COLA adjustments altogether

• Increasing the COLA percentage arbitrarily

• Reducing the number of goods and services in the CPIW

What was one of President Trump's campaign promises related to Social Security?

• Double the COLA percentage

• Increase Social Security benefits by 10%

• Reduce the retirement age to 60

• Eliminate taxes on Social Security benefits

What is the main issue with the current COLA adjustments according to the video?

• They are based on international inflation rates.

• They are only applicable to new retirees.

• They do not fully account for rising expenses in healthcare, housing, or food.

• They are too frequent.