Social Security's buying power drops 36% since 2000, with smaller cost of living adjustments projected.

Inflation has eroded more than one-third of Social Security benefits' buying power since 2000, with those who retired before 2000 seeing a 36% drop in purchasing power. Social Security recipients receive an annual cost-of-living adjustment, but the increases have not kept up with the rise in prices for years, squeezing senior citizens who depend heavily on their monthly payments. Although beneficiaries received an increase of 5.9% for 2022 and 8.7% for 2023, the 2024 adjustment is expected to be lower due to moderated inflation.