I'm Not Counting on Social Security COLAs to Carry Me Through Retirement. Here's What I'm Doing to Combat Inflation Instead
There's a reason Social Security benefits are eligible for an automatic cost-of-living adjustment, or COLA, each year. Without one, benefits would be practically guaranteed to lose buying power over time due to inflation.But while Social Security COLAs help avoid that scenario to some degree, they've been said to ultimately fall short. A 2024 analysis by the nonpartisan Senior Citizens League found that Social Security benefits lost 20% of their buying power between 2010 and 2024. Insufficient COLAs are largely to blame.Image source: Getty Images.Continue reading
There's a reason Social Security benefits are eligible for an automatic cost-of-living adjustment, or COLA, each year. Without one, benefits would be practically guaranteed to lose buying power over time due to inflation.
But while Social Security COLAs help avoid that scenario to some degree, they've been said to ultimately fall short. A 2024 analysis by the nonpartisan Senior Citizens League found that Social Security benefits lost 20% of their buying power between 2010 and 2024. Insufficient COLAs are largely to blame.
Image source: Getty Images.
