Social Security COLAs Don’t Cut It. Here’s How An Annuity Can Fill That Gap

Core Insights - Social Security benefits are failing to maintain retirees' buying power due to inadequacies in the Cost of Living Adjustments (COLAs) formula [2][4][5] - The current COLA formula is based on a consumer price index that does not accurately reflect the spending habits of seniors, leading to a significant loss in purchasing power [6][7] Group 1: Social Security and COLA Issues - Social Security benefits are intended to help retirees maintain their buying power, but this is not happening in practice [2][4] - COLAs are calculated based on a price index for urban wage earners and clerical workers, which does not align with the spending patterns of retirees [5][6] - Since 2010, Social Security benefits have lost approximately 20% of their buying power due to the inadequacies in the COLA calculations [7] Group 2: Potential Solutions - There are alternative solutions, such as annuities, that could help retirees fill the gap created by insufficient Social Security benefits [3]