Have Social Security Benefits Lost Buying Power to Inflation?
The Social Security program is an important source of income for many Americans. Nearly 66 million people -- about 20% of the U.S. population -- received Social Security benefits in November, and nearly 9 in 10 retired workers depend on those monthly checks to make ends meet.
Over the past year, the rising costs of gas, groceries, and other necessities have drawn attention to a potential problem: Social Security benefits may be losing buying power. Of course, the Social Security Administration uses annual cost-of-living adjustments (COLAs) to keep benefits in lockstep with inflation, but many policy experts and politicians argue that COLAs have failed to achieve that goal because they are based on a flawed methodology.
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Source Fool.com
