The Social Security Administration’s recent cost-of-living increases may not be enough to offset the rising costs many Americans face in retirement, according to the AARP, ThinkAdvisor writes.
The SSA announced a 2.8% cost-of-living increase last week for Social Security beneficiaries starting in January, as well as for Supplemental Security Income beneficiaries beginning at the end of December, according to the publication.
These benefits go to more than 67 million Americans, ThinkAdvisor writes. But a study AARP conducted with the Association of Young Americans concluded that 87% of respondents believe that it’s somewhat or very important that they received Social Security benefits in retirement, according to the publication.
AARP’s chief Jo Ann Jenkins commended the cost-of-living adjustment as “needed income security,” particularly for Americans who depend on Social Security for the bulk or all of their income in retirement, according to ThinkAdvisor. But the increase may not be sufficient to help retirees meet rising costs, she said, according to ThinkAdvisor.
“Unfortunately, the cost-of-living increase may not adequately cover their expenses that rise faster than inflation including health, prescription drug, utility and housing costs,” Jenkins says in a statement cited by the publication.