One positive aspect of Social Security is that the program is set up to adapt to economic changes. Each year, for example, Social Security benefits are eligible for an automatic cost-of-living adjustment.

The Social Security cost-of-living adjustment for 2025 is the lowest since the post-Covid inflation spike. Yet retirees still face high prices.

The average retired worker today collects $1,976 a month from Social Security. That amounts to just under $24,000 on an annual basis. But given the way inflation has driven living costs upward in recent years,

Social Security plays a big role in many Americans' retirement security. In fact, 40% of Americans ages 65 and older rely on Social Security for at least half their income, according to the AARP.