Social Security Uses a Flawed Inflation Formula for Retirees -- but Right Now, It Doesn't Matter Much
A structural issue with how Social Security COLAs are calculated isn't hurting retirees much this year for one simple reason.
Overview
The average retiree's Social Security benefits have lost roughly 13.7% of their buying power since 2010, according to an analysis by The Senior Citizens League (TSCL). Why? Social Security cost-of-living adjustments (COLAs) aren't keeping up with inflation, even though that's exactly what they're supposed to do.
There's a simple explanation for this reality: Social Security uses a flawed inflation metric for calculating the annual COLA. But so far in 2026, this flaw hasn't hurt retirees much.
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Originally published at www.fool.com.
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