Inflation affects all consumers, but older Americans are facing an especially dramatic loss of buying power. A recent survey by the Senior Citizens League shows that Social Security benefits have seen a 36 percent loss in buying power since 2000. That number is actually an improvement from 2022, when the loss of buying power was at 40 percent.
In order for senior citizens to recapture the same buying power they had at the turn of the millennium, they would need an increase of $516 in their monthly Social Security benefits. For retirees, the average recipient benefit of $1,827 would need to increase to $2,343.
When examining seniors’ buying power, the researchers looked at the cost of 38 goods and services. Eggs topped the list of items that have seen an increase in price. The cost of a dozen eggs has increased 332 percent since 2000, from 98 cents to $4.21. Eggs doubled in price from 2022 to 2023 alone. Prescription drugs have also seen an increase of more than 300 percent since 2000.
Other items that increased in price more than 150 percent in the study period include:
Medicare Part B premiums
Medical and veterinary care
“This loss is cumulative and grows deeper as retirees age,” the Senior Citizens League stated. “It can cause significant hardships, including more rapid depletion of savings than expected, growing debt, and worse health outcomes.”
This also shows the importance of preparing for your financial future. A comprehensive estate plan can help you effectively manage your assets, minimize taxes, protect your wealth, and ensure your financial goals are met.
Reach out to us, working with your financial planning professional, we will assist you in creating a plan that will give you better control over your financial affairs and allow you to make informed decisions to provide for yourself and your loved ones in the long run.