Social Security cost-of-living adjustments (COLAs) were introduced in 1975 to help seniors maintain their buying power amid inflation. However, they often fail to keep pace with the actual cost of living increases, resulting in the loss of 20% of buying power for beneficiaries since 2010. Additionally, rising Medicare costs further erode the effectiveness of COLAs for retirees, who rely heavily on Social Security for income. As inflation continues to rise, the adequacy of COLAs becomes increasingly crucial for countless seniors.
Many retirees get most of their income from Social Security, and the fact that benefits have lost substantial buying power due to inflation puts them in a tough position.
Social Security cost-of-living adjustments (COLAs) are tied to inflation, but in practice, they often fail to preserve beneficiaries' buying power over time.
Collection
[
|
...
]