Social Security COLAs Fail to Keep Pace with Elderly Inflation Realities
Social Security's 2.8% cost-of-living adjustment for 2024 trails the 3.1% inflation rate experienced by older Americans on essential goods. The persistent gap stems from using a generalized CPI formula that underestimates healthcare, housing, and grocery costs dominating retiree budgets.
AARP surveys reveal only 22% of Americans over 50 believe COLAs adequately cover living expenses. Historical data confirms the shortfall: Since 2000, COLAs have risen 78% while elderly-specific costs jumped 141% for healthcare and 118% for housing.
"Retirees are effectively taking annual pay cuts," notes Gina Seibert of PSECU. The structural miscalculation forces beneficiaries to divert spending from discretionary categories, creating Ripple effects across consumer economies.
