Social Security benefits have been reduced by 34% in REAL dollars since 2000 according to a study by the Virginia Senior League.
This is happening even with the Cost of Living Adjustments for Social Security benefits.
Let’s put it like this. In 2000 you had $1 in Social Security benefits. That $1 could buy you a loaf of bread, let’s just say.
Fast forward 18 years and now that loaf of bread costs $2. But your $1 dollar of Social Security benefits has only grown to $1.66. This means you can no longer afford that loaf of bread.
That is what’s going on with the REAL Inflation rate, i.e., what the true cost increases for retirees, vs. the Social Security Cost of Living Adjustments.
This is not good folks. It means you are losing purchasing power each and every year you are on Social Security. Purchasing power is the ONLY thing that matters. Actual dollars don’t matter. Purchasing power per dollar is what matters. Always remember that.
Oh, don’t forget you are also paying tax on your inflated dollars as well which puts you even further behind.