Why Social Security COLAs need a reality check - The Motley Fool
According to a May 2020 report by the Senior Citizens League it found between January 2000 and January 2020, Social Security benefits lost 30 percent of their purchasing power. A person who retired in 2000 with the average monthly benefit of $816 would in 2020 be receiving $1,246 a month thanks to Cost- of-Living Adjustment (COLA); however, the same person would need an extra $380 a month to maintain the purchasing power of 2000. Is there a flaw in how Social Security COLAs are calculated? In Robin Hartill’s article for the Motley Fool, she explains the reason why Social Security COLAs need a reality check and why recent COLAs are a warning for future retirees. Read Ms. Hartill’s article here…
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