While the Social Security cost-of-living adjustment is expected to be 6% in 2022, according to The Senior Citizens League, even that increase won't fill the hole that inflation has eaten in the real value of benefits, the advocacy group says.

Since 2000, Social Security benefits have lost 32% of their buying power despite yearly inflation adjustments, the group found in a new study. While COLAs have increased Social Security benefits 55% in that time, the typical older adult's expenses have increased by 104.8%, according to the study.

In other words: A Social Security benefit that grew to $1,262.40 per month in 2021 from $816 in 2000 should have grown to $1,671 to keep up with rising costs, according to the advocacy group.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Ginger Szala

Ginger Szala is executive managing editor of Investment Advisor magazine. She covered the financial business and alternatives industry for 30 years while editor of Futures Magazine Group. MSJ Northwestern, BA University of Wisconsin-Madison. She is based in Chicago. Go Blackhawks!