Monterey, CA Veterans Will Be Hard Hit By Budget Changes

by Richard Kuehn on 03/16/13

View From A Non-Profit Serving Carmel, Carmel Valley, Gonzalez, Greenfield, King City, Marina, Monterey, Pacific Grove, Pebble Beach, Salinas, Seaside And Soledad California Seniors are bracing for more budget cuts this year after a flurry of slashing last year at the state level, the Federal government is now analyzing how to pay seniors less.  One option is to change the index which determines what the cost of living increase (COLA) will be for Social Security recipients, retired government workers and military.  Particularly hard hit will be the latter.  If the government proceeds with its plan to link payments to the chained CPI (C-CPI), it will take a disproportionate toll on veterans, according to a study by the American Association of Retired Persons (AARP).  23 million veterans would lose $17 billion in benefits according to the AARP calculations.  The youngest disabled would be hit the hardest.  A 30-year old veteran would lose about $100,000 in disability payments, according to the study.  A 65-year old who is not a veteran, in contrast, would lose only $3,900 in benefits over the next decade.  Although the difference in the CPI and the C-CPI is only about 0.3%, this compounds over time and it will be a big hit for retirees.  Although the AARP will lobby against the change, I think at this point it is unlikely the government will back down from implementing the change given our current budget situation.

Please note that this blog reflects my personal opinion and may or may not reflect the opinion of Hands To Help Seniors and the individual members comprising the Board of Governors.