Social Security benefits rise since 1984 but purchasing power declines

Social Security benefits for retirees have increased significantly since 1984. The average monthly payment rose from $460.57 in 1984 to $1,925.46 in November 2024, reflecting annual cost-of-living adjustments. Despite these increases, the buying power of Social Security benefits has declined. A report from 2024 indicates that benefits have lost about 20% of their purchasing power since 2010, even with annual adjustments. This trend suggests that retirees may find it harder to rely solely on Social Security in the future. Exploring additional income sources may help mitigate the impact of reduced buying power.