Social Security COLAs Have Lifted Benefits 84% Over the Last Quarter Century. Is That Enough?

Social Security benefits increase annually thanks to a cost-of-living-adjustment (COLA) that is intended to help benefits rise along with inflation. However, a common perception is that COLAs have failed to keep up with the higher cost of living associated with essentials like food, shelter, and healthcare.Based on my calculations, COLAs have increased benefits about 84% since the turn of the 21st century. While that number may sound impressive, have COLAs actually increased benefits enough over the years for retirees to maintain their purchasing power?To calculate the increase in benefits over the last 24 years, I started with the average retired worker benefit in 2000 of $844. Then, I multiplied that benefit by the COLA for each year through 2024 to get this year's monthly benefit amount of $1,551, an absolute increase of 84% or a compound annual growth rate of 2.57%.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool