Retirement should be a time to enjoy the fruits of a lifetime of labor. Some like to travel, dedicate time to hobbies, volunteer, buy a vacation home, or just enjoy carefree leisure time. But too often, money worries stifle the enjoyment.

According to a Motley Fool study, 62% of retirees rely heavily or exclusively on Social Security for income. This makes the annual cost-of-living adjustment (COLA) critical as prices rise. Unfortunately, a whopping 82% of those surveyed believe the 3.2% increase this year helped little or not at all when it comes to essential expenses. Medical costs are a huge reason why.

The COLA is based on the Consumer Price Index (CPI), which measures broad-based price increases in goods and services. However, medical costs (which disproportionately affect retirees) rise much faster. Since 2000, medical care prices have increased 120% versus 85% for other goods and services, as shown below.

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Source Fool.com