Social Security COLAs Nearly Kept Pace With Inflation Since 2010

Full analysis

A HumbleDollar contributor analyzed the purchasing power of Social Security benefits since January 2010, finding that $100 in benefits has grown to $147.36 by 2026 through compounded Cost-of-Living Adjustments (COLAs — annual inflation-linked increases to benefit checks), while $100 in general purchasing power required $153.15 to match. The gap is modest, but the author notes it feels larger to retirees because the biggest price surges — housing, restaurants, medical services, and groceries — hit harder than the broad Consumer Price Index suggests, especially after the COVID-era inflation spike of 2021–2022.

The piece also highlights a compounding problem for retirees using the standard 4% safe-withdrawal rule (drawing down 4% of a portfolio annually to fund retirement): a $1 million portfolio starting in 2010 would yield roughly $61,260 per year by 2026 after inflation adjustments. The author warns that many Americans have retired without a coherent inflation-coping strategy, and that a surviving spouse's income is particularly vulnerable to multi-decade price erosion.