7 Everyday Costs That Are Growing Faster Than Social Security Benefits
Written by
Angela Mae
Edited by
Melanie Grafil
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Social Security benefits vary from person to person based on a number of factors: how much they earned during their working years, how long they worked and contributed to the system, and when they retire. The final amount is generally calculated using the “average indexed monthly earnings,” which summarizes up to 35 years of indexed income, according to the Social Security Administration (SSA).
In January 2024, the average benefit amount for a retired individual was $1,907. Some individuals are also eligible for Supplemental Security Income (SSI), which generally range from $943 (individuals) to $1,415 (couples), as listed by the SSA.
In times of high inflation, cost-of-living adjustments (COLAs) may be made. A COLA increases the Social Security and Supplemental Security Income (SSI) benefits to try to counteract rising prices. Sometimes, however, these adjustments aren’t enough.
Benefits Have Lost 20% of Their Buying Power Since 2010
According to The Senior Citizens League, an advocacy group, Social Security benefits have lost 20% of their buying power since 2010. What this means is that $100 in 2010 would only buy $80 worth of goods today. In order to make up for this lost value, the average retiree would need to receive an additional $370 a month — or $4,440 a year.
In January of each year, Social Security recipients receive a COLA. But in eight of the past 15 years, inflation has outpaced COLAs.
Since 2010, COLAs have increased benefits by a total of 58% — or 3.9% per year. During this time, the cost of everyday goods and services rose by approximately 73% — 4.9% annually.
So, what everyday costs have grown the most rapidly compared to Social Security benefits over the past decade and a half? These are the big ones.
Newest iPhone
Technology has never been cheap, but the latest iPhones — basic models — have skyrocketed in price. In fact, they cost 301.5% more today than they did in 2010.
New and Used Cars
The average cost of a used car is $25,540, according to Kelley Blue Book (KBB). This is a 4% decrease from what it was last year. It’s also a 217% increase from 2010.
KBB also found that new cars cost an average of $47,401. This is an 81.2% increase from 2010.
Bread
Bread is a staple in many U.S. households. It’s gone up by 146.7% in the past 15 years. This breaks down to roughly 9.78% per year, though there was a notable inflation hike around the COVID-19 pandemic that was responsible for much of this increase.
Veterinary Services
For retirees with pets, veterinary care is almost inevitable. But it’s also largely unaffordable compared to what it was. The cost of veterinary services has gone up by 89.7% since 2010.
Housing
Since 2010, the average home price has gone up by 88.6%. As per a Zillow report, the average U.S. home price is $362,481 — that’s a 3.3% increase over the past year alone.
Home rentals haven’t gone up quite as much, but they’ve still risen by 66.4%. That’s about a 4.43% increase if you were to take it by year.
Many retired homeowners have to juggle additional costs, such as home maintenance, repairs, insurance and taxes. Property taxes have also risen by 88.6% since 2010.
Meat
Not all meat prices have risen faster than Social Security benefits can keep up, but beef definitely has. Since 2010, prices of ground beef have gone up by 73.1%, or 4.87% a year.
Taking things a little further back, the average price of a pound of ground beef is currently $5.497. In 2000, it was $1.483, according to the U.S. Bureau of Labor Statistics (BLS).
Other types of meat have also gone up in price. Bacon, for example, now costs $6.883 per pound. This is a 10.4% increase from just a year prior.
Some meats, like boneless chicken breast, have actually dipped in price. This is potentially good news for those living on Social Security.
Transportation Services
Transportation services have also gone up by 64.2% over the past 15 years. But it’s not just this — the cost of gasoline has also risen quite substantially.
In July 2024, the average cost of gasoline — all grades — was $3.60 per gallon. In 2020, it cost a little over $2, according to the U.S. Energy Information Administration.
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