Social Security checks up $48 – Retirees upset about COLA increase
According to Lagradaonline, Millions of older adults in the U.S. continue to face financial hardships, unable to afford housing, food, or healthcare. Despite an impending increase in Social Security checks, it’s unlikely to solve these problems. The Social Security Administration (SSA) has forecasted that the upcoming cost-of-living adjustment (COLA) won’t be enough for retirees grappling with rising consumer costs. Independent Social Security and Medicare researcher Mary Johnson has confirmed that the COLA announcement is scheduled for October 10, with experts predicting a modest 2.5% increase due to declining inflation. This follows a 3.2% increase in 2024 and an 8.7% raise in 2023. Over the past two decades, the average COLA increase has been approximately 2.6%, according to the nonpartisan Senior Citizens League.
Retired Americans Disappointed by the Modest Increase in Social Security Checks
The anticipated 2025 COLA increase is expected to be the smallest since 2021, raising the average monthly Social Security benefit by about $48. This estimate is based on the current average retirement benefit of $1,907, as reported by the SSA. However, any gain from the COLA will be partly offset by an increase in Medicare Part B premiums, which are expected to rise by $10.30 to $185 per month from the current $174.70. Since Medicare Part B premiums are automatically deducted from Social Security payments, retirees will see a portion of their COLA increase absorbed by healthcare costs.
For retirees like Susan, a 71-year-old woman from central Virginia, the $48 monthly increase is far from adequate. In an interview with MarketWatch, Susan explained that she relies heavily on Social Security and spends $300 a week on groceries, supplementing her food with venison from her husband’s hunting. She pointed out that while gas prices have decreased, her electric bill has soared, and her two dogs’ veterinary costs have surged. On top of that, she recently had to replace her roof, HVAC system, and appliances—expenses that a small COLA increase simply cannot cover.
Nearly Half of U.S. Seniors Struggle to Meet Basic Needs
The modest Social Security increase comes at a time when many older Americans are already struggling to cover their basic expenses. According to updated research from the National Council on Aging and the LeadingAge LTSS Center at UMass Boston, more than half of seniors aged 60 and older cannot afford essential needs such as housing, food, transportation, and healthcare. The Elder Index, used in the study, calculates the income required to meet these basic needs. The findings show that 49.6% of seniors, representing over 27 million households, fall short of the threshold.
The data also highlights that the full impact of the COVID-19 pandemic was not reflected in the most recent data, from 2020. Nevertheless, the number of senior households struggling financially has grown by almost 5% in just two years. The Elder Index tracks how much various age groups need to cover basic living expenses and maintain independence as they age, focusing on critical areas like housing, transportation, Medicare costs, and a minimal food plan that meets USDA nutritional guidelines. It does not account for non-essential activities like entertainment, leisure, or dining out.
The research also revealed a troubling trend: between 2018 and 2020, 60% of older adults saw a decline in their total assets, even though their incomes experienced a slight increase. Among the most financially vulnerable—15 million households, or the bottom 20% of Americans over 60—many had no assets or were in debt. The median income for this group in 2020 was just $18,000, and over 90% of these households had incomes below the Elder Index threshold.
A Growing Crisis for Older Adults
Marc Cohen, co-author of the report from the LeadingAge LTSS Center at UMass Boston, warned that despite slight income gains, millions of older adults continue to live on the edge financially. “The situation is unsustainable,” Cohen said, emphasizing that the crisis is worsening. The report underscores the need for urgent action, noting that the U.S. is currently in the worst phase of a deepening crisis.
As seniors continue to face growing financial pressures, the modest COLA increase, while welcome, is unlikely to provide the relief many retirees desperately need. Without comprehensive reforms to address the broader challenges facing older Americans, the gap between Social Security benefits and the true cost of living will only continue to widen.