AFN Pension Assets Information Timelier The value of the NRLN’s work with the U.S. Senate’s Committee on Help, Labor, Education and Pensions (HELP) in 2022 appears this year in the Annual Funding Notice being sent to pension plan beneficiaries. The NRLN worked with the committee staff of Washington Senator Patty Murray, at that time Chair of the Committee on HELP. The NRLN’s proposal on making AFN information clearer and timelier was in a bill introduced by Senator Murray and later incorporated with another Senate pension bill. The Senate passed the pension legislation as part of the omnibus appropriations bill. The House also passed pension legislation. Together, the 2022 major pension legislation is known as Secure 2.0. Before the 2022 legislation, pensioners received an AFN which failed to provide a clear picture of how well or poorly a pension plan was funded. This was because by the time beneficiaries received an …
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How far Social Security checks went in 1980 compared to today
Many older Americans today rely on their Social Security benefits for a stress-free. But retiring on Social Security alone is not an easy thing.
A big part of the reason is that Social Security benefits have lost buying power through the years. Even though those benefits are designed to keep up with inflation, they’ve largely failed to do so. And for retirees without other income, falling behind has been inevitable.
Let’s take a look at what the average Social Security benefit was in 1980 compared to today and how it holds up to inflation.
The average Social Security benefit in 1980 vs. today
In 1980, the average retired worker received $341.40 per month in Social Security. By contrast, as of April 2026, the average monthly Social Security benefit for retired workers was $2,081.16.
Clearly, that’s a huge difference. But it’s also important to remember that things cost a lot more today than they did back in 1980. And when we adjust today’s average benefit for inflation, it’s easy to see why people who live mostly on Social Security tend to struggle financially.
Benefits have not held up well to inflation
The average monthly Social Security benefit today is much higher than it was 46 years ago. In fact, $341.40 per month in 1980 has the same buying power as $1,461.35 in April of 2026. But even though benefits had a large nominal increase over the past 46 years, actual purchasing power has not increased in line with inflation.
Furthermore, it was a lot easier to live on Social Security in 1980 than it is today because seniors faced fewer expenses. In 1980, there were no cell phones, streaming services, or internet connections to pay for.
Also, home prices were a lot cheaper in 1980. Even though wages were lower, home prices are 337.56% higher today than they were back then.
Why Social Security recipients today feel behind
Many Social Security recipients today struggle to cover their living costs. And part of the reason is that seniors tend to spend a large portion of their income on healthcare expenses.
Health care costs tend to rise faster than broad inflation. And through the years, Medicare premiums have eaten away at Social Security’s cost-of-living adjustments (COLAs), since those premiums are paid directly out of Social Security benefits for dual enrollees.
In 2026, for example, Social Security benefits got a 2.8% COLA at the start of the year. But the cost of Medicare Part B rose $17.90 a month, increasing from $185 in 2025 to $202.90 in 2026. That’s a roughly 9.7% increase, which is more than three times the 2.8% COLA Social Security recipients got at the start of the year.
A problematic COLA formula is largely to blame
Social Security benefits have been eligible for an automatic COLA since 1975. Prior to that, lawmakers had to actively vote on annual increases.
Social Security COLAs are based on changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). But that index does not accurately reflect the expenses Social Security recipients tend to face — namely, because it tracks the spending patterns of workers, and specifically those in urban areas.
The Senior Citizens League estimates that between 2010 and 2024, Social Security benefits lost an astounding 20% of their buying power due to insufficient COLAs. As of 2024, benefits would have needed a boost of $4,442 per year to rebuild their value to 2010 levels.
The Senior Citizens League has been pushing for a change to the Social Security COLA formula so that raises do a better job of keeping up with inflation. Specifically, the group wants COLAs to be based on the Consumer Price Index for the Elderly, since that index more accurately reflects the specific costs seniors face, including health care expenses.
Bottom line
A lot of older Americans’ retirement plans and income hinge on Social Security. But even though the average monthly benefit has increased quite a lot since 1980, Social Security recipients today are not necessarily in a better position to cover their living expenses.
If you’re in the process of planning for retirement, it’s important to realize that having Social Security as your only or even primary source of income could leave you struggling to pay your bills. Rather than run that risk, aim to have other income streams to supplement those monthly checks.
Consistently funding an IRA or 401(k) could help you build a large nest egg. And if you start investing in stocks and ETFs, especially when you’re fairly young, you can create a portfolio with the power to outpace inflation. That way, even if Social Security benefits don’t rise as much as they should between now and when you’re set to retire, your savings might increase at a very respectable rate.
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The articles and opinion pieces below are for information and are not necessarily a reflection of the NRLN’s position on issues.
The NRLN is nonpartisan and its positions on retirement issues are presented in its Legislative Agenda and white papers that can be accessed from under the Legislative Agenda tab on the website main menu.
