Predictions You Need to Know!
The U.S. economy continues to shape the future of retirement benefits, Social Security, and the cost of living adjustment (COLA), especially as we approach 2025. With inflation slowing but still present, many retirees and Social Security recipients are bracing for changes in their financial landscapes. If you’re planning your retirement or already retired, here’s what you need to know about the upcoming year and how it could impact you—especially if you live in California, where the cost of living is already sky-high.
The Economic Outlook: Slowing Inflation but Lingering Challenges
The most recent economic reports paint a picture of slowing, yet persistent, inflation. According to the Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI) rose by 0.2% last month, with an annual inflation rate of 2.5%. While inflation has eased compared to the previous year, prices are still creeping upward, which puts strain on Social Security recipients and retirees, many of whom have a fixed income.