Credit: Getty
According to The SUN USA, Recent projections for the cost-of-living adjustment (COLA) for next year suggest a significant decrease from 2024’s increase. Although the official COLA announcement will not be made until October, The Senior Citizens League (TSCL), a non-partisan senior advocacy group, released its latest estimate on July 11.
The projection, now at 2.63%, marks a slight increase from June’s prediction of 2.57%. However, it remains the lowest expected COLA increase since 2021’s 1.3%. Shannon Benton, the executive director of TSCL, explained to The U.S. Sun that if this projection is confirmed in the official announcement this fall, retirees could see only a modest $45 increase in their monthly Social Security benefits.
Benton expressed concern that this additional money would not be sufficient to cover the rising costs of daily essentials that seniors rely on. “More is certainly needed to cover the increase in just about everything seniors spend their money on,” Benton wrote in an email. She emphasized the need for legislative changes to ensure that COLA increases are more closely aligned with the actual expenses of those who depend on Social Security benefits.
Also Read – MAKING ENDS MEET: Americans in line to get less Social Security COLA in 2025 after 3.2% bump this year
Growing Concerns Over Financial Strain
Benton also highlighted the serious concerns around “food insecurity” and the inability of seniors to pay their energy bills, issues that have persisted even after 2024’s 3.2% COLA increase. “With so many seniors facing food insecurity and having difficulty paying their heating and cooling bills and other necessary household expenses, it’s crucial that we advocate for policies that provide meaningful support and address these pressing challenges,” she noted. Benton called on Congress to enact legislation that more accurately aligns COLAs with the real cost of living for seniors.
The 3.2% increase in benefits for 2024 resulted in an average monthly boost of about $59 for retirees, according to TSCL data. However, a survey by the league found that this increase was insufficient to keep pace with rising expenses for at least 93% of respondents. Around 43% of those surveyed reported that their monthly expenses had risen by $185 in 2023, creating a gap of approximately $126.
Moreover, 77% of Medicare recipients in the survey reported monthly increases of around $171, adding further strain to their finances.
Seniors Struggle with Debt and Rising Costs
Debt has become a growing issue for seniors, with 48% of survey respondents reporting significant consumer credit card debt and 52% noting that they had depleted much of their emergency savings. One of the biggest challenges in managing living expenses has been the rising cost of groceries. According to the Bureau of Labor Statistics, the cost of the “average grocery item” has inflated by around 24% since 2020, as highlighted in TSCL’s recent release.
Although inflation fell by 0.1% in June, bringing the 12-month rate to 3%, it remains above the Federal Reserve’s target of 2%. The rate is also notably lower than May’s 3.4%. Despite these inflationary trends, Americans are making adjustments in their shopping habits to cope with rising costs. For example, a fast food customer recently left a popular chain after noticing a 70% increase in the price of a family meal. Additionally, a comparison of grocery prices between Walmart and Aldi revealed a clear winner for the best deals.
