Social Security benefits’ buying power is fading, despite adjustments
Share Now on:
Social Security benefits will grow by 1.6% in 2020, thanks to the program’s annual Cost of Living Adjustment (COLA).
That’s a smaller increase than in either of the past two years (this year’s increase was 2.8%; last year’s was 2%) but a bigger than average boost compared to the past decade.
The annual COLA is based on the Consumer Price Index for working-age residents of urban areas. But it’s widely accepted that this figure fails to account for seniors’ higher spending on health care and housing, which are experiencing significant inflation. Changing that would require an act of Congress.
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?