To be more precise the lower limit, which is currently the cap, is adjusted based on a wage index called the AWI which historically goes up faster than inflation. It’s gone up 42% since 2016.
To be more precise the lower limit, which is currently the cap, is adjusted based on a wage index called the AWI which historically goes up faster than inflation. It’s gone up 42% since 2016.
This is true of Social Security in general. Broadly speaking, this means seniors benefit from productivity gains, rather than being locked into the goods and services from 1933.
Yes, broadly speaking. Initial benefits are also indexed in this fashion. More narrowly speaking the index is skewed upward by uncovered income and employed middle income folks who were just above the cap and aren’t seeing wages go up with productivity have gotten hosed the past few years.
To be more precise the lower limit, which is currently the cap, is adjusted based on a wage index called the AWI which historically goes up faster than inflation. It’s gone up 42% since 2016.
This is true of Social Security in general. Broadly speaking, this means seniors benefit from productivity gains, rather than being locked into the goods and services from 1933.
Yes, broadly speaking. Initial benefits are also indexed in this fashion. More narrowly speaking the index is skewed upward by uncovered income and employed middle income folks who were just above the cap and aren’t seeing wages go up with productivity have gotten hosed the past few years.