Written By: Anushka
Since 2010, Social Security benefits have lost 20% of their purchasing power, requiring a $4,440 annual increase to compensate.
Prices for goods and services have risen by 73% from 2010 to 2024, outpacing the 58% increase in Social Security benefits.
The 2025 COLA is expected to be 2.63%, below the current 3% inflation rate, marking the lowest increase since 2021.
High inflation and interest rates have raised costs for essentials, disproportionately affecting lower-income Americans.
Inflation remains above the Federal Reserve’s 2% target, with prices increasing by 20% since January 2021.
Many Americans are uncertain about retirement viability, with 25% of non-retired investors doubting they’ll save enough.
Retirees may need over $1 million for comfortable retirement, varying by state, with some areas requiring as much as $2 million.