Social Security Recipients May Face Disappointment with 2025 COLA
The annual cost-of-living adjustment (COLA) for Social Security beneficiaries is expected to be announced soon, and the news may not be what many are hoping for. According to predictions, the COLA for 2025 could be as low as 2.5%, which would be the smallest increase since 2021.
This means that the average retired worker’s benefit of $1,920 would only increase by $48 per month. While this may seem like a welcome boost, many seniors are still feeling the effects of high prices and may not find this increase sufficient to cover their everyday expenses.
In recent years, Social Security beneficiaries have seen larger COLAs, with increases of 8.7% and 5.9% in 2023 and 2022, respectively, in response to high inflation. However, even though the rate of inflation has slowed, prices have not returned to pre-pandemic levels, leaving many seniors struggling to make ends meet.
Experts warn that the COLA may not be enough to keep pace with the rising cost of living, and seniors may need to adjust their budgets accordingly. The official COLA announcement is expected to be made on Thursday, and will be based on the latest consumer price index data.
Social Security beneficiaries will start seeing the adjustment in their January checks, but can get an early look at how their benefits will be affected by checking their online My Social Security account or via a mailed paper statement from the agency in December.
Leave a Reply