A Minimum 2.5% COLA Every Year: If The UK Can Do It, Why Can’t We?

     From Forbes:

In the United States, Social Security benefits increase in line with inflation, that is the CPI-W. Presumed Democratic nominee Joe Biden, as well as others advocating for boosts for recipients, support a shift to a special (but currently experimental) windex for elderly-specific inflation. Others support a shift to the “chained-CPI” in which weightings are adjusted whenever people shift their buying patterns due to disproportionate price hikes (e.g., buying more chicken, less beef, means that the lower CPI for chicken would be more relevant than the higher CPI for beef, in a “chained” calculation). But ...  the U.S. is actually in the minority, in terms of developed countries, in adjusting its Social Security benefits solely based on inflation; other countries are likely to use wage increases or a combination of both inflation and wage increases. (Should the United States make such a change? In a perfect world, maybe — but it’s hardly practical when we’re still unable to make the necessary changes to restore the system to sustainability in the first place.) 

But the UK goes even further: its pensions increase each year by the greater of inflation, the average wage increase, or 2.5%. ...