Inflation is moderating, but rising costs have eroded the buying power of Social Security earnings by 36%, according to a recent study by The Senior Citizens League (TSCL).
Older Americans that retired before 2000 would have to earn an extra $516.7 more per month or $6,200 more this year than what they are currently getting to maintain the same level of buying power as in 2000, according to the study.
The loss of buying power comes even as Social Security cost of living adjustments increased by 8.7%, which boosted the average monthly benefit by about $140.
While slowing from a 40-year high hit last June, inflation remains well above the Federal Reserve’s 2% target rate. April’s consumer price index (CPI), a measure of inflation, rose 4.9% year-over-year, a slowdown from the 5% increase in March, according to the Bureau of Labor Statistics (BLS).