Written By: Anushka
The 2025 COLA for Social Security has been updated. Retirees are preparing for potential impacts on their benefits.
Inadequate COLA increases have led to a 20% decline in Social Security income purchasing power since 2010, according to TSCL.
TSCL reports that COLA adjustments have often failed to keep pace with inflation, eroding retirees' purchasing power over the years.
The COLA is based on the Consumer Price Index (CPI-W) for Urban Wage Earners and Clerical Workers, averaging data from July to September each year.
Prices for essentials like housing, food, and transportation have outpaced COLA adjustments, further straining retirees' budgets.
Since 2010, the price of goods like iPhones and used cars has soared, with some costs increasing by nearly 300%.
TSCL Chairman Edward Cates suggests that without changes to Social Security, benefits are unlikely to regain lost purchasing power.