Tuesday, November 30, 2004

More Social Security

Don't have time to go into great detail, but a lot of people wrote in arguing that social security benefits only went up by a COLA every year. This is true and not true. Initial benefit levels upon retirement for any particular lifetime income path increase every year according to a wage index. Then, each year, your benefits go up by a COLA. Wages tend to grow faster than the cost of living, so this initial level grows faster than the COLA...