Retirees Could Lose $77,900 Under New COLA Plan: 80% Face Smaller Social Security Raises

Inflation could hit retirees harder if Social Security raises fail to keep pace with their everyday expenses. (Credit: Monica Silvestre/Pexels.com)

An analysis by the AARP Public Policy Institute estimates that 80% of Social Security beneficiaries would receive smaller annual increases under a flat-rate COLA. For one hypothetical retiree, the cumulative loss could reach about $77,900 over retirement.

The proposal is not law. It is one of several ideas being discussed as policymakers look for ways to address Social Security's long-term financial shortfall.