Get ready for some disappointing news about Social Security’s 2025 COLA. The cost-of-living adjustment (COLA) for Social Security benefits is projected to be lower in 2025 than in previous years. This means that retirees and other Social Security recipients may see a smaller increase in their benefits to keep up with inflation.
The COLA is determined based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). In recent years, the COLA has been relatively low due to low inflation rates. This trend is expected to continue into 2025, resulting in a smaller increase in Social Security benefits.
For retirees who rely on Social Security as their primary source of income, a lower COLA can have a significant impact on their financial well-being. It may mean having to tighten their budget or make difficult choices to make ends meet.
While the final COLA for 2025 will not be determined until later this year, it’s important for retirees to start planning for a potentially smaller increase in their benefits. This may involve finding ways to reduce expenses, increasing other sources of income, or exploring other financial options.
As Social Security recipients await the official announcement of the 2025 COLA, it’s important to stay informed and prepared for any potential changes to their benefits. Planning ahead can help mitigate the impact of a lower COLA and ensure financial stability in retirement.