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Inflation has eroded 40% of Social Security's purchasing power since 2000
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Inflation is rapidly eroding the buying power of Social Security benefits, according to new research published this week.
The Senior Citizens League, a nonpartisan group that focuses on issues relating to older Americans, estimated on Wednesday that Social Security recipients have lost 40% of their buying power since 2000.
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"That’s the deepest loss in buying power since the beginning of this study in 2010," said Mary Johnson, a policy analyst at the Senior Citizens League who conducted the research.
Although Social Security benefits have climbed by 64% since 2000 thanks to cost-of-living adjustments, typical senior expenses through March 2022 have actually grown by more than double that rate – 130% – as consumer prices soar. The Labor Department reported that inflation surged by 8.5% in March, the fastest pace since December 1981, and continued to hover near that high in April, with prices rising by 8.3%.