Social Security recipients have been battling inflation for over twenty years now, usually in failure. The problem might worsen if the present debt ceiling crisis isn’t handled, and it’s unlikely to improve till politicians modify how annual cost-of-living adjustments (COLAs) are determined.
The nation’s oldest individuals who resigned around 2000 have reduced 36% of their purchasing power because of the turning of the century, according to research published early that month by The Senior Citizens League, a non-partisan seniors advocacy group. This is why COLAs haven’t consistently up with inflation. For these pensioners to keep the same level of purchasing power as in 2000, an additional $516.70 each month ($6,200 in 2023) will be required.
Based on a news release from the Senior Citizens League, Social Security COLAs raised payments by 78%, or a typical 3.4% annually, between January 2000 and February 2023. Yet, during the same time frame, the average cost of products and services for pensioners increased by 141.4%, or 6.2% annually.
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