Each year, the Social Security Administration adjusts its benefits to account for inflation, providing an annual cost-of-living increase (COLA) intended to offset rising prices. However, this year, according to CBS News, the program’s 67 million recipients may see their smallest boost since 2021 — only 2.63 percent!
This projected figure is based on recent inflation data, with consumer prices in June rising by 3 percent — the smallest increase since June 2023 and less than the 3.1 percent economists had forecast. A 2.63 percent increase would amount to a monthly payment boost of about $50, based on the current average monthly benefit of $1,907.
The official 2025 COLA announcement won’t come until October, but things aren’t looking good.
While U.S. inflation is easing, many seniors aren’t feeling the relief. Poverty among senior citizens has been on the rise in recent years, and almost half of people over 65 years old reported having difficulty paying their household bills, according to the most recent Census Household Pulse survey, conducted from May 28 to June 24.
In fact, Feeding America estimated that 5.5 million Americans aged 60 and above suffered from food insecurity in 2021, and that number is likely higher today.
These statistics underscore the urgent need for additional support for seniors. The projected 2.63 percent COLA falls short of what seniors need to keep up with rising costs, leaving many older Americans struggling to make ends meet. Addressing these challenges is crucial to ensuring that seniors can live with dignity and financial security in their retirement years.
We believe that the Elder Relief Act is the best option to make retirement affordable for millions of Americans. Learn more about this important legislation here.