Additional Coverage:
- Here’s the 2025 COLA increase for Social Security recipients (newsbreak.com)
Social Security Cost-of-Living Adjustment (COLA) Set at 2.5%
The Social Security Administration has announced a 2.5% cost-of-living adjustment (COLA) for 2025. This is the smallest annual COLA increase since 2021.
Impact on Benefits
On average, the COLA will add about $50 to monthly benefit checks. For retirees receiving the average monthly payment of $1,927, this will increase to $1,976. Married couples who both collect Social Security will see their average benefit rise to $3,089 per month.
Concerns for Older Americans
Some advocates for older Americans argue that the modest COLA is insufficient to keep up with inflation. They note that the COLA is based on a metric that doesn’t accurately track the higher healthcare costs faced by retirees.
Silver Lining
Despite the concerns, the 2.5% COLA reflects the cooling of inflation. Experts suggest that the COLA could remain relatively low in future years if inflation stays near the Federal Reserve’s target.
Impact of COLA
The annual COLA is designed to prevent Social Security benefits from losing value over time. However, advocates argue that the current formula doesn’t fully capture older Americans’ expenses. They propose using an alternative inflation measure that reflects the spending of people 62 and over.
Personal Impact
For some seniors, the COLA increase is not enough to offset the rising cost of living. Many are seeking additional income sources to supplement their Social Security benefits.
Read More About This Story:
- Here’s the 2025 COLA increase for Social Security recipients (newsbreak.com)