Inflation vs. Social Security: The Struggle to Maintain Retirees’ Buying Power
The text examines the inadequacy of Social Security's cost-of-living adjustments (COLAs) in keeping up with inflation, highlighting a 20% decline in purchasing power since 2010. It critiques the CPI-W's insufficiency in accurately representing retirees' expenses, particularly in housing and medical care. With a forecasted 2.5% COLA for 2025, retirees face financial strain, necessitating prudent budgeting and exploring additional income streams like high-yield savings and CDs. The text also hints at strategies to maximize Social Security benefits.