You've likely heard by now that Social Security's benefit payments will be 3.6% bigger beginning in January than they are now, reflecting the price inflation U.S. consumers have experienced over the past 12 months. If you're already receiving Social Security retirement benefits, however, this annual cost-of-living adjustment (COLA) might be inadequate. That's because anyone receiving Social Security retirement benefits is considerably older than the average American (who is 39.4 years old, according to the Census Bureau), and therefore has different life expenses than other U.S. residents. Specifically, while the typical retiree's household spends less on food, housing, and transportation, it also spends measurably more on healthcare despite earning measurably less income. Those little things add up over time to become one pretty big thing.
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