Although inflation rates have slowed in recent months, the cost of living in 2024 remains significantly higher than in previous years, leaving many Americans struggling to keep up. For older Americans, the situation is particularly dire. Social Security benefits, a lifeline for many retirees, have lost 20 percent of their purchasing power since 2010.
This means that those who retired in 2010 would need an extra $370 a month, or $4,440 a year, just to maintain the same standard of living. To put this in perspective, what $100 could buy in 2010 only gets $80 worth of goods in 2024.
While Social Security recipients receive an annual cost-of-living adjustment (COLA), these increases often fall short of matching the actual rise in prices. Over the past 15 years, eight of the COLA adjustments have been lower than the rate of inflation, leaving seniors, many of whom live on fixed incomes, struggling to make ends meet.
Since 2010, Social Security benefits have increased by 58 percent, but the cost of goods and services for typical retirees has surged by 73 percent. Basic necessities like bread and ground beef have seen prices soar by nearly 147 percent and 73 percent, respectively, making it even harder for seniors to cover their daily expenses.
This widening gap between income and expenses underscores the financial challenges many older Americans face in today’s economy.
A proposed bill, The Elder Relief Act, could provide much-needed support for Americans over age 82 who depend on Social Security to manage the high cost of living. If passed, this bill would offer a substantial monthly increase in benefits, along with a guaranteed annual adjustment designed to keep pace with inflation. Learn more about this vital legislation here.