Since mid-2021, consumers of all ages have been buckling under the weight of inflation. But it’s fair to say that inflation has been a particular problem for retirees, many of whom live on a fixed income that consists largely of Social Security.
In a recent Edward Jones survey, 63% of respondents cited inflation as the most significant financial shock they’ve experienced in retirement. And if you want to set yourself up to better cope with inflation as a retiree, then there’s one important step you need to take.
A big reason retirees tend to struggle during periods of inflation is that Social Security has long done a poor job of helping seniors maintain buying power. Quite the contrary — recent data from the Senior Citizens League reveals that Social Security recipients have lost a good 36% of their buying power since the year 2000 even when accounting for this