Social Security COLA in 2025
Individuals getting the federal Social Security benefits program can expect a 2.5% cost-of-living adjustment (COLA) in 2025, according to new projections that predict inflation’s hold over them will weaken over time after a period of quick growth.
Last week’s economic data showed a moderation in inflation that could move it back to its 2% annual target just ahead of an anticipated downclocks to benchmark interest rates by the Federal Reserve, as The Senior Citizens League (TSCL) issued a forecast.
While TSCL makes available its own monthly estimates of the Social Security COLA based on recent economic data — and will again in just a few days with an updated projection for June — the official COLA increase won’t be known to the public until October.
Even with the steep reduction expected in this year’s COLA, “the 2.
The COLA has been averaging about 2.6% over the last 20 years,” the organization said, the lowest value was 0.0% in years 2010, 2011 and 2016 and the highest was equal to 8.7% in year 2023.
Yet so too are households paying more in real terms for a host of goods and services thanks to inflation and other pulls on the family purse as the perils of living on fixed incomes — whether state or bank alone — manifest themselves.
Seven days left to enroll in “In the TSCL 2024 Retirement Survey, 65 percent of seniors said they did need certainly to pay at the least $2,000 per thirty days for requirements has risen from 55 per cent this past year.
Our statistical testing reveals that only 0.4% of this gap results from regular survey noise.
Though the numbers show more impact on low-income seniors, and yet those in a higher income bracket are spending more above their income level as well.
“Ensuring that seniors are able to have the necessary resources to eat and be housed with dignity is a key factor in why we fight for at least a 3 percent COLA,” said Shannon Benton, TSCL executive director.
TSCL research reveals that about two-thirds of seniors rely on Social Security for more than half of their monthly income, and 28 percent depend on it entirely.
While last year’s COLA was larger, it did not keep up with the rise in prices and expenses that older Americans are told depend on what they receive from the Social Security Administration. Although an increase of 3.2% overall to kick off 2024 fairs well against (or at least better than) the inflation experienced in the U. S. economy last year,
That made the COLA that started in January of 2023 an effective increase of 8.7%, which was its highest level since a 14.3% COLA took effect in 1981.
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