Social Security Isn’t Keeping Up With Inflation

97% of older Americans receive Social Security. Like taxes, this is one of the few financial events everyone experiences. And as such, “The Death Of Social Security” has been discussed ad nauseam.

Making macro predictions is largely pointless since nobody knows what the future holds. So, I’m not going to waste your time with speculation.

However…

The Social Security Administration has slowly raised the age requirements for receiving full Social Security benefits. Per their official website, “If you were born in 1960 or later, your full retirement age is 67.”

Additionally, Social Security recipients often receive paltry cost of living raises that can’t keep up with inflation.

On October 10, 2024, for example, the Social Security Administration determined their annual cost of living adjustment raise — hiking Social Security benefits by 2.5%.

The average monthly Social Security benefit is $1,783.55.

Or, about $21,402 annually.

This is equivalent to having $425,000 worth of assets that yield 5% per year.

And this excludes capital appreciation or corporate dividend increases — both of which can easily outpace inflation and eclipse Social Security’s anemic cost of…