Reducing the annual cost-of-living adjustments
If in 2015 we did not have cost-of-living adjustments, in recent years we have witnessed an increase – of 0.3% in 2016, of 2% in 2017, of 2.8% in 2018 but also in 2019, and of 1.6% in 2020. That’s why retirees who already receive Social Security benefits have seen their checks rise slightly in subsequent years, in an attempt to keep up with inflation.
To alleviate the future problems of Social Security reserves, the cost-of-living adjustments formula may change for people born after 1960. But in this case, benefit payments will no longer keep pace with inflation, and those who rely on predominantly on Social Security will definitely experience money problems.