AARP says the senior advocacy organization is “deeply dismayed” by President Obama’s budget proposal to use a calculation known as a “chained CPI” to determine future Social Security cost-of-living adjustments.
The plan was officially unveiled in the President's new budget proposal. Chained CPI would mean benefit increases would be slowed, and Cynthia Fagyas of AARP Arizona says that means ever-larger reductions in what monthly checks would have been under the current system.
AARP estimates a typical recipient would lose over $2,000 in benefits over the next ten years.
Chained CPI would result in a $130-billion savings over the next ten years, and has strong GOP support.