At 78 years old, Janet Albrecht has reluctantly swapped her beloved beef sandwiches for instant noodles, as her Social Security benefits in the U.S. haven’t kept pace with the relentless rise in inflation.
Until just last year, Albrecht could still enjoy a hearty lunch with beef sandwiches or a refreshing tuna salad. However, the soaring costs of food, housing, and healthcare have forced her to slash her grocery budget. The meager increases in her Social Security check simply haven’t been enough to cover these escalating expenses.
Albrecht, a retired graphic designer, estimates that she now spends over $100 more per month on groceries compared to 2021, the last year before inflation spiraled out of control. To make matters worse, her landlord has hiked her rent by an additional $65 per month over the past two years, and her electricity bills have climbed as well. The cost of the daily medications she needs after suffering a heart attack has also risen. For more than a year now, she has refrained from cutting her hair, despite not liking it long, because of the extra cost.
These days, I just eat instant noodles for lunch. It’s something I never thought I’d eat, not until recently,” she shared. Albrecht now lives in Indiana, Pennsylvania, surviving on a monthly Social Security check of $1,163. I can’t even remember the last time I bought beef. It’s just not something I can afford anymore,” she added.
Many seniors across the United States are feeling the same financial pinch from inflation. A recent study by The Senior Citizens League—a dedicated advocacy group for older Americans—revealed that the purchasing power of Social Security benefits has plummeted by 20% since 2010. To put it in perspective, $100 spent in 2010 now only buys about $80 worth of goods today. This shortfall means that retirees would need an extra $370 per month, or roughly $4,440 annually, to make up the difference.
Tom and Susan Freyer from Palmdale, California, have been living off Social Security and Susan’s teacher pension for the past few years. Five years ago, they could save enough to celebrate their wedding anniversary with a weekend getaway to Newport Beach, California. But this year, their plans remain uncertain. “Now, the money has to stretch to cover gas and food as well,” Tom explains.
Nancy Portz, 74, was shocked when she saw a single bell pepper priced at over $2. “Healthy food now costs a small fortune,” she remarked. Her monthly electric bill has tripled, and her water bill has doubled compared to when she first bought her home in 2016.
Each January, Social Security benefits are adjusted for cost-of-living increases, but these adjustments often lag behind actual inflation, leaving many seniors struggling. The Senior Citizens League points out that in 8 out of the last 15 years, these adjustments were lower than the inflation rate.
From 2010 to 2024, Social Security benefits increased by 58%. However, the prices of goods and services commonly purchased by retirees surged by 73%, according to The Senior Citizens League. For instance, the cost of bread and beef soared by 147% and 73%, respectively, during this period.
This year, benefits rose by only 3.2% as inflation began to cool. Data released on August 14 showed that the U.S. Consumer Price Index (CPI) increased by 2.9% in July—the first time it dipped below 3% since 2021.
The Senior Citizens League forecasts that next year’s adjustment will be a mere 2.6%. Shannon Benton, the organization’s director, warns that this increase won’t suffice for many seniors. We’re hearing that housing and food costs continue to climb, forcing many to cut back on spending and rely more heavily on credit cards,” she stated.
Albrecht is also feeling the squeeze, as her Social Security benefits lose purchasing power. Food prices keep rising. Electricity is going up too. Everything costs more than it used to,” she concludes.
