2025 Social Security COLA: How Much Will Beneficiaries Receive?
According to KTLA, The Social Security Administration is just days away from announcing its cost of living adjustment (COLA), which reflects the percentage increase in recipients’ payments aimed at offsetting inflation. This announcement is scheduled for October 10.
COLA Forecast
Current estimates suggest the COLA could be around 2.5%. This estimate is provided by The Senior Citizens League (TSCL) and is based on the decline in consumer price inflation from 2.9% in July to 2.5% in August. “Ensuring that seniors have enough to feed and house themselves with dignity is a major reason why we advocate for a minimum COLA of 3%,” said Shannon Benton, TSCL’s executive director, in a news release. According to TSCL research, approximately two-thirds of seniors rely on Social Security for more than half of their monthly income, with 28% depending on it entirely.
Comparison with Previous Increases
If the projected 2.5% increase is confirmed, it will be lower than the 3.2% bump beneficiaries received in 2024. The Social Security Administration calculates the COLA using average inflation data from the Consumer Price Index during the months of July, August, and September.
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Historical Context
While there has never been a negative COLA adjustment, there have been instances of a 0% increase in 2010, 2011, and 2016. The largest COLA in the past two decades was 8.7% in 2023, driven by soaring inflation. The highest ever recorded was 14% in 1980, according to SSA tables.
Impact on Seniors
TSCL’s research indicates that the combination of rising health care costs and inadequate COLAs has eroded the purchasing power of these income adjustments by over 30%. Notably, the rising cost of Medicare is not included in the COLA calculations, prompting some politicians to call for changes.
Legislative Response
“A monthly Social Security check is how most seniors make ends meet; we need it to pay our bills and cover health co-pays and medications,” stated U.S. Rep. Ruben Gallego (D-AZ), who introduced the Boosting Benefits and COLAs for Seniors Act in March. The bill has been referred to the Committee on Finance but has yet to be voted on in Congress.
As the announcement date approaches, many are keenly awaiting news on how the COLA will impact the financial well-being of millions of seniors across the nation.