SOCIAL SECURITY: AARP director blasts Obama's CPI proposal - KMSP-TV

SOCIAL SECURITY: AARP director blasts Obama's CPI proposal

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President Barack Obama wants to slow the growth of Social Security, but that's already drawing protests from millions of seniors and several liberal organizations.

The budget plan released Wednesday calls for a change in the way Social Security is calculated by tying it to the Consumer Price Index (CPI). The plan called "Chained CPI" would increase the amount checks go up based on the CPI, which gives a lower measure of inflation.

Currently, the checks are linked to measured inflation, and Obama estimates the move will cut the federal debt by $230 billion while still providing protections for the oldest seniors, low-income seniors, veterans, and those who are disabled by exempting them from a lower monthly check.

Initially, the reduction in the growth of Social Security checks would be quite small, around $38 and $45 in the first year, for the average retired worker. Over time, however, that could grow to hundreds of dollars.

For many seniors, this decrease would be a big deal. Almost 66 percent of seniors rely on Social Security for at least 50 percent of their income. For 36 percent of seniors, Social Security accounts for at least 90 percent of their income.

FOX 9 News spoke with Michele Kimball, director of AARP Minnesota, about the proposal and its impacts.

Watch the video for more information.

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