Retirement Living takes an unbiased approach to our reviews. We may earn money when you click a partner link. Learn More

› Retirement News

Seniors group finds Social Security benefits have lost 20% of buying power since 2010

vitaly-gariev-unsplash

Its report claims the average benefit is $370 a month, less than 14 years ago

Avatar photo
By:
Avatar photo

Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.

Updated:

key insights:

  • A new study finds Social Security benefits have lost about 20% of their buying power since 2010 due to inflation outpacing annual cost-of-living adjustments.
  • The average retired worker would need roughly $370 more per month in benefits to match the purchasing power retirees had in 2010.
  • Researchers say rising costs for housing, healthcare, and food are among the biggest financial pressures facing older Americans.

Each year, Social Security recipients get a cost-of-living adjustment to their benefits, based on the rate of inflation. However, a new report from The Senior Citizens League warns that Social Security benefits are continuing to lose ground against inflation, leaving many retirees struggling to keep up with the rising cost of essentials.

The group’s 2024 “Loss of Buying Power” study found that the average Social Security benefit for retired workers has lost about 20% of its purchasing power since 2010.

According to the report, the average monthly Social Security payment for retired workers was about $1,860 in January 2024, compared with roughly $1,176 in 2010. While benefits increased by about 58% over that period, the prices of many goods and services commonly used by seniors climbed even faster.

$4,400 annual shortfall

The study estimates that retirees would need an average monthly benefit of approximately $2,230 today to maintain the same purchasing power Social Security provided in 2010. That amounts to about $370 more per month, or more than $4,400 annually. 

“Inflation has grown much faster than Social Security benefits,” the report states, noting that many seniors rely heavily on Social Security as their primary source of income. 

Researchers blamed much of the erosion on COLAs, which failed to keep pace with retirees’ real-world expenses. The report found COLAs lagged inflation in eight of the last 15 years.

Housing, healthcare, and food

The League said housing, healthcare, and food costs have been among the fastest-growing expenses affecting retirees. Previous editions of the organization’s buying-power studies also highlighted sharp increases in dental care, prescription drugs, utilities, and vehicle repair costs. 

The report comes as seniors face uncertainty about the long-term future of Social Security. The study notes the Social Security trust fund is projected to become insolvent in 2033 unless Congress acts, potentially triggering automatic benefit reductions. 

The advocacy group is urging lawmakers to adopt reforms that would better protect retirees from inflation. Among the recommendations are tying Social Security COLAs to the Consumer Price Index for the Elderly, known as CPI-E, which supporters say more accurately reflects seniors’ spending patterns than the current formula.