Why Social Security Needs to Change the Way It Calculates Raises
Each year, seniors on Social Security eagerly await news of a cost-of-living adjustment, or COLA, to keep up with their living expenses. But Social Security COLAs have been notably stingy over the past 10 years, and as a result, seniors have lost a whopping 30% of their buying power since 2000. Here, we'll discuss why COLAs have been so low and what can be done about it.
Between 2002 and 2011, Social Security COLAs averaged 2.43%, which is somewhat in line with the general rate of inflation. Between 2012 and 2021, on the other hand, COLAs averaged just 1.65%.
Image source: Author.
Source Fool.com
