The Social Security Administration recently announced a 2.5% increase in their Social Security benefits for 2025. The cost-of-living adjustment is in line with the 2.6% average annual increase over the past 20 years, but it’s slightly lower than the 3.2% rise beneficiaries received this year. The 2025 Social Security adjustment, known as the COLA, reflects the slowdown in inflation. Social Security calculates the adjustment using the Consumer Price Index for Urban Wage Earners and Clerical Workers, taking the average inflation readings from July, August and September of the current year and comparing them with the same period from a year earlier. But the index tracks a range of goods and services that are purchased primarily by younger working people, not by retirees, who often spend more of their income on housing and health care. The adjustment is often mostly eaten up by the increase in Medicare Part B premiums, which are automatically deducted from Social Security checks. And Medicare Part B for 2024 is $174. 70 and is rising to around $185. For more information go to yoursafemoneyshow.com.
No comments:
Post a Comment