If it feels like each annual increase buys less at the grocery store and the pharmacy, that concern isn’t just pessimism. Social Security cost-of-living adjustments are designed to track inflation, but the inflation measure used doesn’t always match what older households actually spend the most on. Add in rising health costs and automatic deductions, and the net increase can feel smaller than the headline number. That’s why many retirees ask whether their buying power is eroding even in years with a COLA. Here’s what’s really happening, and how to pressure-test your own budget so you’re not surprised mid-year.
