Written By: Anushka
In 2025, Social Security benefits are projected to rise by $49 per month due to a 2.63% Cost of Living Adjustment (COLA).
The Senior Citizens League estimates a 2.63% COLA for 2025, but the SSA will confirm the official number in October.
The average retiree, currently receiving around $1,900 per month, will see an increase of roughly $49. Despite this, many retirees feel the increase is insufficient.
Living costs for retirees have risen significantly. Since 2000, Social Security has lost 36% of its buying power, with a need for an additional $516.70 per month to match the same purchasing power.
Rising healthcare costs and general inflation mean that the COLA increase may not cover retirees' expenses adequately, causing ongoing financial challenges.
Mary Johnson of the Senior Citizens League argues for a more accurate measure for COLA to assure that Social Security benefits keep pace with actual living costs.
Policymakers need to regard updating COLA calculations to provide more meaningful increases, helping retirees manage their expenses better.