American retirees are increasingly frustrated and concerned because their resources are not sufficient.Social Security benefitsA new study indicates that a significant majority of retired individuals, around 63%, are unhappy with their income. Even though the average Social Security payment has surpassed $2,000 in 2024, a survey conducted by The Senior Citizen's League (TSCL) involving 1,920 people over the age of 62 found that a mere 10% were content with their benefit amounts.
This pervasive discontent isn't just a passing fancy; it highlights a growing economic reliance that has become essential for a significant number of senior citizens in the US. According to the TSCL report, almost 73% of older adults depend on Social Security for over half of their earnings. Over a third (39%) consider it their only source of retirement funds, while 19% rely on it for at least 75% of their income, and 15% receive between 50% and 75% of their income from it.
At the heart of this dissatisfaction is a core economic problem: Social Security payments don't buy as much as they used to, having dropped about 20% in value since 2010. This considerable decline is because the cost-of-living adjustments (COLAs) haven't kept up with actual inflation. COLAs are intended to maintain the value of benefits by increasing payments to match inflation, which is measured using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Inadequate Adjustments
Each year, the Cost of Living Adjustment (COLA) is calculated by comparing the average CPI-W from the third quarter of the current year with that of the same quarter of the previous year. This calculation led to a 2.5% rise in benefits for 2025. Nevertheless, The Senior Citizens League (TSCL) contends that these yearly adjustments "often fail to keep up with inflation as experienced by older adults." The report emphasizes that "housing and transportation costs have risen faster than inflation over the past 15 years," creating a situation that is “especially challenging for older adults who rent their homes or live in areas with limited walkability.”
The ongoing difference between how benefits are adjusted and the increasing costs of daily living is placing a significant number of retired individuals in a vulnerable position. This reliance on Social Security, coupled with its diminishing ability to cover expenses, points to a quiet but significant problem that threatens the financial security of millions of elderly Americans, creating considerable difficulties for their health and overall living standards in the future.
Chris Motola, a financial analyst from NationalBusinessCapital.com, points out, "The swift rise in expenses is impacting everyone's finances, seniors included." He also mentioned that the "almost complete lack of pensions for those working in the private sector" has resulted in "older individuals depending more and more on Social Security to cover their retirement costs."
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