Which group of retirees is least susceptible to cost-of-living increases compared to the general population?

Retirees who own their own home are indeed in a position that makes them generally less susceptible to cost-of-living increases compared to the general population. This is primarily because homeowners typically do not face the same level of rent or housing cost inflation that renters do. Rent is often adjusted annually based on market rates, which can increase steadily with inflation.

In contrast, homeowners may have fixed-rate mortgages or may have already paid off their homes, meaning their housing costs remain stable regardless of market fluctuations in rent. Additionally, homeowners can also manage their living expenses differently, potentially reducing their overall susceptibility to inflation by controlling costs associated with property tax, maintenance, and utilities.

It stands to reason that those relying solely on Social Security, living in apartments, or having no investments could be significantly impacted by cost-of-living increases due to the nature of those financial arrangements. Specifically, retirees living on Social Security alone might find that their monthly benefits do not keep pace with inflation, particularly if cost-of-living adjustments do not adequately reflect their increasing living expenses. Thus, homeowners are generally in a more favorable position when it comes to managing the effect of inflation on their retirees.