Summary
The increase in the Social Security cost-of-living adjustment (COLA) for 2025 is set at 2.5%, significantly lower than previous years’ adjustments, which have been influenced by high inflation rates. This smaller increase is raising concerns among seniors, who feel it may not adequately address their rising living costs, particularly for essentials like food and healthcare.
As inflation has moderated, the Social Security Administration (SSA) has announced that approximately 70.6 million recipients will see their monthly benefits rise by about $50, bringing the average check to around $1,968. While this increase reflects a cooling inflation environment, many seniors, such as 82-year-old Sherri Myers, express that it won’t sufficiently alleviate their financial struggles. Advocacy groups are urging a shift to a more appropriate index for calculating COLA, such as the Consumer Price Index for Elderly Consumers (CPI-E), which better reflects the spending patterns of older Americans. The ongoing dialogue surrounding Social Security funding is further complicated by projections that the trust fund may be unable to pay full benefits starting in 2035, prompting calls for reform and sustainable solutions to protect retirees’ financial well-being.
Economic Context
The COLA is determined based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which has been criticized for not accurately capturing the specific expenses faced by seniors. The recent COLA increase comes after a historically large 8.7% adjustment in 2023, driven by significant inflation. The current adjustment is seen as a reflection of the Federal Reserve’s efforts to control inflation, which has led to a decrease in energy prices and overall costs.
Implications for Seniors
Many seniors are concerned that the 2.5% increase will not keep pace with their actual living expenses. Advocacy groups highlight that a substantial portion of seniors rely on Social Security for the majority of their income, making any shortfall in COLA particularly impactful. With rising costs in essential areas such as healthcare and groceries, there is a growing sentiment that the current COLA formula fails to provide adequate support for older adults navigating financial challenges.
Political Landscape
The conversation around Social Security is increasingly intertwined with political campaigns, as candidates propose various strategies to address the program’s long-term sustainability. Vice President Kamala Harris and former President Donald Trump have articulated differing approaches, with Harris focusing on increasing taxes for the wealthy to bolster Social Security funding, while Trump emphasizes maintaining existing benefits without raising the retirement age. As the debate continues, the urgency for legislative action to enhance the COLA and secure the program’s future has become a focal point for both advocates and policymakers.
Increase in Social Security checks in 2025 – First reactions are coming in, and it’s not good news
Oct. 16 / La Grada / Discusses reactions from aging advocacy groups to the COLA announcement. It emphasizes the need for reform and alternative calculations, offering a unique perspective that could drive further discussion on policy changes. “ Aging advocacy groups reacted to Thursday’s announcement of the 2025 cost-of-living adjustment (COLA) for Social Security checks , saying it’s unlikely to...
Here’s what the Social Security cost-of-living increase will be in 2025
Oct. 10 / Pennlive / Covers the official announcement of a 2.5% COLA increase, emphasizing the struggles of retirees like Sherri Myers. It includes personal anecdotes, adding emotional weight, yet lacks a broader analysis of systemic issues. “ By FATIMA HUSSEIN, The Associated Press WASHINGTON (AP) — Millions of Social Security recipients will get a 2.5% cost-of-living increase to their monthly...
Goodbye to the increase in Social Security checks – FED makes it official
Oct. 8 / La Grada / Examines the looming financial challenges for Social Security and the expected COLA cuts. The article succinctly presents key statistics and expert opinions, although it could benefit from a deeper exploration of solutions. “ As the last part of the year approaches, millions of beneficiaries are waiting for confirmation about the new cost of living adjustment (COLA) and further...
Oct. 10 / La Grada / Analyzes the implications of the announced COLA and the dissatisfaction among retirees. It effectively contrasts the views of political figures on Social Security, enriching the debate with diverse perspectives. “ Approximately 70.6 million people receiving Social Security are expected to see a smaller COLA for 2025 compared to previous years and the reason for this...
Social Security’s 2025 cost-of-living increase won’t be enough due to inflation, retirees say
Oct. 9 / Fast Company / Focuses on retirees' dissatisfaction with the upcoming COLA increase. It presents Sherri Myers' struggles, showcasing real-life implications, but could provide more context on the broader economic landscape affecting seniors. “ Sherri Myers, an 82-year-old resident of Pensacola City, Florida, says the Social Security cost-of-living increase she’ll receive in January “won’t make a...
Oct. 9 / Oregon Local News / Highlights the anticipated COLA increase and its inadequacy for seniors, echoing concerns from advocacy groups. It effectively combines personal stories with statistical data, making it relatable and informative. “ Sherri Myers, an 82-year-old resident of Pensacola City, Florida, says the Social Security cost-of-living increase she’ll receive in January “won’t make a...
Cuts in Social Security checks starting in 2026 – FED warns
Oct. 2 / La Grada / Addresses the potential cuts in Social Security checks, providing a critical perspective on the Federal Reserve's warnings. It effectively highlights the implications for retirees, making it relevant and timely. “ As the new cost-of-living adjustment (COLA) draws near, recipients receiving Social Security checks , especially those who are retired, will likely receive...