Social Security Recipients Are Losing Buyer Power This Year -- Despite a Generous Raise
There's a reason seniors on Social Security are entitled to annual cost-of-living adjustments, or COLAs. Without those raises, their buying power would erode to an extreme degree in the course of retirement due to inflation.
The problem with COLAs, though, is that they've historically done a poor job of helping seniors stay afloat financially in light of inflation. This holds true even when COLAs are fairly generous.
Such is the case this year. Seniors on Social Security were privy to a 5.9% COLA for 2022 -- the most generous raise the program had dished out in decades. In spite of that, they're already losing buying power in a very big way.
Source Fool.com
