Please ensure Javascript is enabled for purposes of website accessibility

Is This Social Security Threat Gone for Good?

By Dan Caplinger – Mar 8, 2014 at 4:06AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A much-hated proposal to change Social Security has disappeared for now, but will it be back?

Social Security has been in financial trouble for years, and many proposals to shore up its finances have been controversial. In President Obama's new budget, one previously suggested change to Social Security was taken out, but is the controversial provision gone for good?

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at the proposal to change cost-of-living adjustments by using what's known as the chained CPI. Dan notes that economists argued in favor of the move, saying that it better reflects the actual prices people pay. But opponents saw it as a veiled threat to Social Security benefits, and they believe that the Obama budget now properly protects Social Security recipients from that threat. Dan notes that those who supported the chained-CPI COLA now say that the failure to move forward will only cause bigger problems in future. Dan concludes that you can count on this issue coming up again in the future.

Dan Caplinger doesn't own shares of any companies mentioned in this article. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.