THE DECLINE OF REAL SOCIAL SECURITY BENEFITS

American seniors who depend on Social Security benefits are confronting an increasingly difficult reality, as the Cost-of-Living Adjustments (COLAs) have not kept pace with the actual inflation rate. This gap is particularly evident in essential areas like healthcare, housing, and everyday living expenses, where costs have surged disproportionately. According to the Senior Citizens League, retirees have lost 20% of their buying power since 2010, reflecting a significant erosion in the real value of their benefits. This decline could result in a reduction of up to $400 per month, further threatening seniors' financial security and overall well-being.

The COLAs, designed to protect the purchasing power of Social Security recipients, have not been sufficient in recent years. The formula used to calculate these adjustments often underestimates the actual inflation experienced by seniors, particularly in healthcare. This leaves many retirees struggling to cover their basic needs, forcing them to make difficult choices about their living arrangements, medical care, and daily expenses. As inflation continues to climb, the gap between the COLA increases, and the actual cost of living grows wider, exacerbating the financial strain on seniors.

There is an urgent need for policy reform to ensure that Social Security adequately supports the financial stability of seniors in the face of rising living costs. Without intervention, the financial security of millions of American seniors remains at risk, threatening to undermine the very purpose of the Social Security system. It's crucial to prioritize adjustments that accurately reflect the inflationary pressures the elderly face. Ensuring that COLAs are sufficient to cover the true cost of living is not just a matter of financial prudence but a moral obligation to protect the well-being of the nation's retirees.

The Senior Citizens League (TSCL)

Social Security Benefits Lose 20% Of Buying Power Since 2010 (The Senior Citizens League (TSCL), 7-18-24)

The Cost-of-Living Adjustment for 2025 Projected at 2.57% (The Senior Citizens League (TSCL), 8-14-24)

Bad news for millions of seniors in America: $400 cut in Social Security payments each month (Eco News, 8-28-24)