Retirees who rely on Social Security benefits as a major income source or just an amount that helps them make ends meet always look forward to the second week in October. That’s when the Social Security Administration (SSA) announces its annual cost of living adjustment (COLA). Financial analysts are estimating the 2025 COLA will be between 2.6 and 3 percent based on how inflation is performing to date.
It’s estimated that 9 out of 10 retirees rely on Social Security benefits in some measure to handle expenses. Since 1975, the COLA increase has been determined by comparing a year-over-year change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the third quarter of the year.
Even though there are signs core inflation may be cooling, the possible COLA hike is not all good news for seniors. That’s because the CPI-W doesn’t take into account increases in shelter or medical care, the two biggest challenges retirees face. So, a 2025 COLA increase won’t give beneficiaries more purchasing power.
Council of Seniors Works to Bolster Social Security
Additional retirement income has become a must for today’s seniors. Here at Council of Seniors, we’re working diligently to get Congress to pass The SAVE Benefits Act. This legislation is vital because the annual Social Security cost-of-living adjustment (COLA) hasn’t met seniors’ needs in recent years. If we succeed, the $581 missing from their benefits will be returned.
Signing our petition gets you on board with the growing number of Americans wanting help. Congress needs this wake-up call to refocus its priorities.
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