Though Social Security is designed to supplement people’s income in retirement, for some Americans it serves as their primary or only source of income. Either way, retirees rely on these monthly checks to cover essential expenses like housing, food and healthcare.
While Social Security benefits receive an annual cost-of-living adjustment (COLA) to help offset inflation, those increases don’t always keep pace with the real costs retirees face. Some years, inflation runs hotter than the adjustment, eroding purchasing power.
