Social Security is one of the most important social programs for older Americans, with roughly 90% of those age 65 and older collecting benefits, according to 2024 data from the Social Security Administration. But the cost of living has changed significantly over time, and today's benefits look much different than in 1984.
Social Security benefits have been steadily increasing
The Social Security Administration introduced cost-of-living adjustments (COLAs) in 1975 to help benefits maintain their buying power amid rising inflation. As a result, beneficiaries receive a small raise most years when the COLA takes effect.
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In 1984, the average benefit was just $460.57 per month. It's steadily gone up over time, with today's retirees earning an average payment of $1,925.46 per month, as of November 2024.
| Year | Average Monthly Payment |
|---|---|
| 1984 | $461 |
| 1994 | $697 |
| 2004 | $955 |
| 2014 | $1,329 |
| 2024 | $1,925 |
Data source: Social Security Administration.
However, while benefits are increasing over time, they're not necessarily worth more than they were decades ago. In fact, since 2010, Social Security has lost around 20% of its buying power, according to a 2024 report from nonprofit group The Senior Citizens League.
Even with annual COLAs, Social Security is struggling to keep pace with rising costs. If this trend continues, retirees may not be able to rely on their benefits as much in the future as they do now.
There may not be much you can do about Social Security's loss of buying power, but there's a good chance benefits won't go as far as they used to. If possible, leaning more heavily on other sources of income can reduce your dependence on Social Security and better protect your retirement.
