I'm Not Counting on Social Security COLAs to Carry Me Through Retirement. Here's What I'm Doing to Combat Inflation Instead.

Most U.S. households don't save enough for retirement, and the typical household has just $200,000 saved by age 65. Using the popular 4% rule, that's only enough for retirees to withdraw about $8,000 in their first year.As a result, over 57 million retired Americans depend on Social Security. The average monthly benefit in May was approximately $1,950. It's a financial lifeline, crucial for people to eat and keep a roof over their heads.Each year, a cost-of-living adjustment (COLA) is applied to Social Security benefits to help account for rising living expenses, and this year's COLA was 2.5%. Many are seeing their bills increase more quickly than that. Additionally, Social Security may face financial strain that could weigh on COLA increases over the coming decades.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool