The annual Cost-Of-Living Adjustment (COLA) for Social Security benefits, determined by the Social Security Administration (SSA), aims to adjust benefits based on projected inflation rates. For 2025, analysts estimate that the COLA is projected to be 2.7 percent. If this projection holds, it will mark the first time in 31 years that seniors receive a COLA of 2.7 percent or above four years in a row.
Since 2022, seniors have seen notable increases in their Social Security benefits, driven by high inflation rates. The COLA for 2022 was set at 5.9 percent, followed by a significant jump to 8.7 percent in 2023. This dramatic increase was a response to the extreme inflation rates experienced during that period. However, as inflation began to slow, the COLA for 2024 was adjusted to 3.2 percent.
Despite these adjustments, there is concern that the COLA for 2024 and the projected increase for 2025 may not be sufficient to keep pace with current costs for older Americans. The rising cost of living, particularly in areas such as healthcare, housing, and daily expenses, continues to outstrip the adjustments provided by the COLA.
The SSA’s annual adjustments are intended to lessen the impact of inflation on seniors, but their effectiveness in maintaining financial stability misses the mark for older Americans. The projected 2.7 percent increase in 2025 is not likely to make things better. Read more about the 30-Year-COLA first on Newsweek here.
We believe that a bill we call the Elder Relief Act would be life-changing for retirees who rely on Social Security. This proposed legislation would give Americans 82 and over a significant monthly increase along with a guaranteed substantial boost every year after. learn more here.