An expert in social security predicts a reduction in the Cost of Living Adjustment for 2025.
Each year, the COLA is determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers to ensure that Social Security benefits keep up with inflation. This adjustment impacts various benefits, including retirement, disability, and survivor payments.
Experts predict the 2025 COLA to be around 2.5-3%, a decrease from previous years. This news is concerning for those reliant on Social Security benefits, as it may not adequately address rising costs of living.
The official 2025 COLA rate will be announced by the Social Security Administration later this year, based on the Consumer Price Index for the last three months of the year (July-September).
Recent studies indicate that COLAs have not kept pace with inflation in the past decade. Many seniors feel the current increases are insufficient to cover rising expenses, especially in areas like food and housing.
Financial experts also express reservations about the COLA calculation methods, highlighting potential reductions in retirement income due to COLA adjustments.