Were at that time of year when analysts speculate how much the COLA for Social Security benefits will be for the upcoming year 2025. Keep in mind this is subject to change BUT in 2025, the Social Security COLA may be 2.6%. That’s down from the 3.2% boost to benefits Americans saw in 2024. It’s also substantially lower than the 8.7% COLA Social Security beneficiaries received in 2023, and the 5.9% increase for 2022. The prospective Social Security COLA for 2025 would be the lowest since 2021 but in line with the average cost-of-living adjustments for the past two decades.
The annual Social Security cost-of-living adjustment is calculated based on third-quarter data from a subset of the consumer price index, known as the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. The size of the official increase may change as new CPI data comes in. The Social Security Administration typically announces the COLA for the following year in October. Inflation has been a factor and the COLA is supposed to help retirees but the average Social Security benefit has lost 20% of its buying power since 2010, according to recent research from the Senior Citizens League, a nonpartisan senior group. The group’s research found, today’s average monthly benefit for retired workers would have to increase from $1,860 to $2,230 — nearly 20% — to keep pace with 2010 buying power. We’ll see what the final increase is but remember Social Security was never meant to be all the income for you to have in retirement. Questions go to yoursafemoneyshow.com
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