From Nasdaq: 2025-05-25 03:44:00

The Social Security Act signed in 1935 continues to provide financial support for aging workers, workers with disabilities, and survivors of deceased workers. In 2023, Social Security lifted 22 million people out of poverty, with most beneficiaries being aged 65 and above. Retired-worker benefits are a necessity for many, covering a portion of expenses for 8-9 out of 10 retirees. The average monthly benefit for all beneficiaries was $1,855.57 in April, with retired workers set to see their benefit surpass $2,000 in June for the first time in history.

While Social Security benefits are increasing, they are not keeping pace with inflation, impacting the purchasing power of retirees. The Consumer Price Index for Urban Wage Earners and Clerical Workers, used to calculate cost-of-living adjustments, does not adequately reflect the spending habits of retirees. As a result, the purchasing power of a Social Security dollar has declined by as much as 36% from 2000 to 2023. Despite increasing benefits, retirees are experiencing a decrease in buying power over time.



Read more at Nasdaq: Social Security Retired-Worker Benefits Are Set to Make History Next Week