RETIREMENT NEWS: Updated Social Security 2025 COLA Projections

[aggiesal]

Recently, The Senior Citizen League (TSCL), a nonprofit advocacy organization, projected a revised lower cost-of-living adjustments (COLA) adjustment of 2.5% for Social Security benefits, based on a decline from 2.9% to 2.5% in consumer price data. A 2.5% cost-of-living adjustment (COLA) would decrease the average monthly benefit for retired workers, currently $1,920, by $48. The Social Security Administration is expected to announce the 2024 COLA in mid-October.

Remember, the final COLA for 2025 may differ from current estimates, and staying informed about these predictions is important. We’ll notify you of the official 2025 COLA adjustment when it’s announced around the second week in October 2024.

To learn more about the annual COLA update and how it could impact you, review our Annual Cost of Living Update lesson.

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Is it just me, or does it take an act of GOD to raise the SS COLA when the consumer price index goes up?
But when it goes down, the SS COLA immediately drops.

[Johnny2X2X]

1. Huh? It's an increase

COLA is an increase. It's a cost of living adjustment.

It was going to increase 2.9%, but now just 2.5% since inflation has cooled. So instead of a $55 a month raise, it's a $48 a month raise.

This sounds like something I would read on Facebook.

[aggiesal]

4. I get it. ...

It was lowered 2.9% down to 2.5% Thanks.

[aggiesal]

6. If what you're saying is true, than this line is poorly written ...

A 2.5% cost-of-living adjustment (COLA) would decrease the average monthly benefit for retired workers, currently $1,920, by $48.

This makes it appear that a person getting $1,920 per month will have their monthly benefit reduced to $1,872.

[Silent Type]

2. The formula for determining the COLA is pretty much set in stone. We got decent (for SS) increases in 2021 and 2022,

5.9% and 8.2%.

This year inflation has dropped substantially, that's a good thing.

[MineralMan]

3. Actually, monthly SS benefits do not go down if

the index goes down. They only go up. I don't believe there has ever been a decrease.

[aggiesal]

5. Thanks!

[SheltieLover]

7. Thnk about what seniors spend on: rent/mortgage, food & utilities

Gawd forbit those items be included in the considerations.

[2naSalit]

8. Doesn't matter...

Medicare will increase their premiums to that amount and three other entities will decide that they should also get that extra $45 and they will all demand it.