Social Security was designed to provide a financial foundation for retired Americans. But today, the program’s buying power is eroding.
In 1935, when Social Security was created, the average life expectancy was just over 60 years. Today, it is nearly 79 years. That means retirees are receiving benefits for nearly two decades longer than when the program was created.
While cost-of-living adjustments (COLAs) are supposed to keep benefits in line with inflation, they have not been enough. The Motley Fool reports that since yearly COLAs are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which does not accurately reflect seniors’ spending habits, seniors are not getting the full picture of inflation.
It’s clear that Social Security’s buying power is diminishing. And that means retirees are increasingly relying on other sources of income, like savings and investments, to make ends meet.
The Seniors Center is calling for change. We’re calling on Congress to update the way cost-of-living adjustments are calculated so that seniors can rely on Social Security for the financial support it was intended to provide.