COLA Increase 2025 Date: The cost-of-living increase (COLA) for people on Social Security will be 2.63% next year, down from the current 3.2%.
Table of Contents
The COLA is meant to make sure that inflation doesn’t make it harder for people who get Social Security or Supplemental Security Income (SSI) to buy things.
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of last year to the third quarter of this year was used to make this change.
Even though the COLA of 2.63% is less than what was given this year, it will still increase Social Security payments.
As we said, “Benefits under the current COLA increase Social Security recipients’ benefits by an average of $50.”
Also Read: Texas Tax Free Weekend 2024: Start Date and Eligible Purchases You Need to Know
This good change is due to the work of groups like the Senior Citizens League (TSCL), which fights for the rights of seniors and did the research that led to the 2.63% number.
It is important to note that the COLA prediction has been going down since 2022. This year’s 3.2% rise is less than half of the 8.7% rise that was predicted in 2022.
Here's How Much Social Security's History-Making 2025 Cost-of-Living Adjustment (COLA) Is Expected to Increase Monthly Benefitshttps://t.co/5Bg8adg2dn
— MSN Money (@MSN_Money) August 3, 2024
As noted, “Inflation fell 3% in June, but the rapid rise in food prices since 2020 means that financial relief is still a long way off.”
Even though the COLA is smaller, the increase is still good for people who get Social Security.
“The goal of the COLA is to protect Social Security and Supplemental Security Income (SSI) recipients from losing purchasing power due to inflation.” This means that the 2.63% COLA will help keep the value of benefits the same.
Also Read: Who is Valentino Garavani? All You Need to Know About the World Best Fashion Designer
What a 2.63% COLA means?
Overall, the 2.63% COLA for next year is still good news for people who get Social Security, even though it is less than the current 3.2%.
This shows that TSCL and the government are working hard to protect the buying power of people who get Social Security and SSI.
Since inflation is going down, it’s possible that the Social Security COLA for retirees and other beneficiaries in 2025 will be less.
Social Security Cost-of-Living-Adjustment (COLA) 2025: There's Bad News Coming for Retirees https://t.co/UWaXYPDo8F
— Stevie Nick (no S) (@JackpotNick) July 23, 2024
Mary Johnson, a private expert on Social Security and Medicare policy, thinks that the COLA will be about 2.7% next year, which is less than the 3% she thought it would be.
The average price change that customers report is tracked by the consumer price index (CPI). In June, the CPI hit its lowest 12-month rate in more than three years.
Also Read: What credit score is needed for Wells Fargo autograph card?
The CPI-W, which is used to figure out the Social Security COLA, went up 2.9% over the past year. This is a big drop from the 3.2% COLA that people got in 2024.
The Senior Citizens League thinks that the COLA could be 2.63 percent in 2025, which is a big raise but might not be enough to keep up with rising costs.
The League says that “the average grocery item with prices tracked by the CPI jumped by 24% from 2020 to 2023.” This means that retirees and beneficiaries may have a hard time even though the COLA is higher.
The office usually tells people about the next year’s cost-of-living adjustment in October.
Also Read: Lil Uzi Vert Biography: Age, Career, Net Worth, Songs, Girlfriend
