Understanding Social Security Changes

What significant milestone is Social Security expected to reach for retired workers by June 2025?

• Average monthly payment of $1,500

• Average monthly payment of $2,000

• Average monthly payment of $2,500

• Average monthly payment of $3,000

What is the purpose of the Cost of Living Adjustment (COLA) in Social Security?

• To adjust benefits according to inflation

• To increase benefits based on age

• To provide bonuses for early retirement

• To decrease benefits over time

Why might the CPIW not accurately reflect the spending habits of seniors?

• It emphasizes categories like gas and electronics

• It focuses on rural spending habits

• It is based on international spending patterns

• It includes too many luxury items

What has happened to the purchasing power of Social Security between 2000 and 2023?

• It increased by 20%

• It remained the same

• It dropped by 36%

• It increased by 36%

What is one reason for the increase in Social Security benefits?

• Decrease in the number of retirees

• Increase in the retirement age

• Higher lifetime earnings of new retirees

• Reduction in healthcare costs

What is a potential consequence if no action is taken regarding Social Security trust funds?

• Benefits will increase by 50%

• SSA will introduce new taxes

• SSA may only pay out about 77% of promised benefits

• Benefits will stop completely

What is a proposed reform to better align COLA with senior expenses?

• Eliminating COLA adjustments

• Increasing the retirement age

• Reducing benefits for high earners

• Using the CPI for the elderly

What is a concern about making Social Security a means-tested program?

• It would eliminate benefits for all retirees

• It could increase benefits for everyone

• It might weaken the system's foundation

• It would make benefits tax-free

Why is it important for younger individuals to plan for retirement beyond Social Security?

• Retirement age will be lowered

• Social Security will cover all expenses

• The exact shape of Social Security could change

• Social Security will be abolished

What is a recommended way to ensure financial security in retirement?

• Avoid any form of investment

• Invest in a 401k or Roth IRA

• Rely solely on Social Security

• Spend all savings before retirement