Summary
The potential for a higher Social Security cost-of-living adjustment (COLA) in 2025 hinges on the proposed switch from the current Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to the Consumer Price Index for Elderly Consumers (CPI-E). Advocates argue that the CPI-E better reflects the specific spending patterns and inflationary pressures faced by seniors, which could result in larger annual increases in their benefits.
Currently, the Social Security Administration has announced a 2.5% COLA for 2025, translating to an average monthly increase of about $48 for retirees. This adjustment is notably lower than previous years, where beneficiaries received an 8.7% increase in 2023 due to high inflation. The CPI-E, which accounts for the rising costs of essential items such as healthcare and food that disproportionately affect older adults, could lead to a COLA of around 3% instead. Studies indicate that using the CPI-E would have resulted in higher COLAs in most years since 1986, making it a focal point for advocates pushing for legislative change to ensure that Social Security benefits keep pace with the actual cost of living for seniors.
The Case for CPI-E
The CPI-E is designed to capture the spending habits of older Americans more accurately than the CPI-W. For example, while the CPI-W measures price changes for a broad basket of goods and services, the CPI-E focuses on expenses that are more relevant to seniors, such as healthcare and housing. This distinction is critical, especially as healthcare costs have been rising faster than general inflation, impacting seniors’ financial stability.
Legislative Support
Political figures, including Vice President Kamala Harris, have previously expressed support for changing the COLA calculation method. Harris co-sponsored the Social Security Expansion Act, which proposed using the CPI-E instead of the CPI-W. Such changes would require legislative action, and advocates are urging Congress to consider this shift to better support the financial needs of retirees.
Implications of a Higher COLA
If the CPI-E were adopted, the projected COLA for 2025 could rise to approximately 3%, providing an additional $9.60 per month compared to the current projection. While this may seem modest, for many seniors relying heavily on Social Security, every dollar counts, especially in the face of rising living costs. The ongoing dialogue about the COLA calculation reflects broader concerns about the adequacy of Social Security benefits in the context of an aging population and the financial challenges they face.
Here's How Much Your 2025 Social Security COLA Would Be If Kamala Harris Had Her Way
Oct. 19 / Fool / Highlights Kamala Harris's advocacy for the CPI-E in calculating COLA, presenting a political angle. It effectively discusses potential benefits for retirees but lacks depth in addressing seniors' immediate concerns. “ All Social Security recipients will soon receive a raise. On Oct. 10, 2024, the Social Security Administration (SSA) announced that benefits for more than...
Here's How Much Your 2025 Social Security COLA Would Be If Kamala Harris Had Her Way
Oct. 19 / Fool / Discusses the potential impact of Kamala Harris's proposed CPI-E on the COLA calculation. It offers a unique perspective on legislative advocacy, but could clarify the broader implications for retirees. “ All Social Security recipients will soon receive a raise. On Oct. 10, 2024, the Social Security Administration (SSA) announced that benefits for more than...
Increase in Social Security checks in 2025 – First reactions are coming in, and it’s not good news
Oct. 16 / La Grada / Addresses the COLA increase while highlighting advocacy for legislative changes. It effectively points out the need for reform but could delve deeper into the emotional impact on seniors facing financial strain. “ 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...
Social Security recipients to get cost-of-living increase starting in January
Oct. 10 / Las-vegas Review Journal / Covers the COLA increase announcement clearly, offering a straightforward presentation of facts. The article could be improved by integrating more emotional stories from retirees to connect with readers on a personal level. “ WASHINGTON — Millions of Social Security recipients will get a 2.5% cost-of-living increase to their monthly checks beginning in January, the Social Security...
Social Security recipients can expect a 2.5% increase in benefit payments for 2025
Oct. 10 / Nbc News / Discusses the 2.5% COLA increase and its implications amid cooling inflation. It presents a balanced view but misses opportunities to explore the emotional toll on seniors facing rising living costs. “ Social Security recipients can expect a 2.5% cost-of-living adjustment (COLA) increase in their payments starting in 2025 amid cooling inflation. It's the...
Here’s what the Social Security cost-of-living increase will be in 2025
Oct. 10 / Pennlive / Highlights the upcoming 2.5% COLA increase, providing essential figures and context on inflation trends. However, it could benefit from deeper personal narratives that illustrate the real impact on retirees. “ 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...
Social Security benefits will increase 2.5% in 2025 to account for inflation
Oct. 10 / Upi / Presents the COLA increase alongside essential statistics, maintaining clarity and focus. However, it lacks depth in exploring the personal struggles of seniors, which could enhance reader engagement. “ Oct. 10 (UPI) -- Social Security recipients will get a 2.5% benefits increase in 2025, with more than 68 million people seeing a $50 per month average hike...
Social Security recipients will get smaller cost-of-living bump in 2025
Oct. 10 / Oregon Local News / Examines the COLA increase with a focus on the financial challenges facing Social Security. It provides valuable insights, but could include more personal accounts to engage readers emotionally. “ The Social Security Administration said Thursday that payments would increase 2.5% in 2025, starting with benefits paid in January. Some 72.6 million...
Social Security cost-of-living boost in 2025 of 2.5% will be smaller than in recent years
Oct. 10 / Chicago Suntimes / Addresses the dissatisfaction surrounding the COLA increase, effectively emphasizing personal stories. It could further explore the broader economic context to enhance understanding of the issue. “ Social Security recipients will get a 2.5% cost-of-living increase to their monthly checks beginning in January, the Social Security Administration said...
Social Security cost-of-living boost in 2025 of 2.5% will be smaller than in recent years
Oct. 10 / Chicago Suntimes / Examines the COLA increase alongside seniors' financial challenges, providing valuable insights. It would be stronger with more diverse perspectives to enrich the discussion and highlight varying experiences. “ Social Security recipients will get a 2.5% cost-of-living increase to their monthly checks beginning in January, the Social Security Administration said...
Oct. 10 / La Grada / Explores the significance of Social Security payments amid rising living costs, providing context on inflation's impact. It could enhance engagement by including personal anecdotes from affected individuals. “ Millions of Americans rely on Social Security benefits to help cover essential living expenses. As the cost of living continues to rise, largely due to...
Social Security recipients will get a smaller cost-of-living boost in 2025
Oct. 10 / Postandcourier / Presents the COLA announcement with relevant statistics, maintaining clarity. However, it lacks personal narratives that could illustrate the real-life impact on retirees, making it less relatable. “ WASHINGTON — Millions of Social Security recipients will get a 2.5 percent cost-of-living increase to their monthly checks beginning in January, the agency...
Goodbye to the increase in Social Security checks – FED makes it official
Oct. 8 / La Grada / Focuses on the implications of a smaller COLA increase, effectively capturing concerns from advocacy groups. It could benefit from a broader analysis of potential reforms to better support seniors. “ 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 / Focuses on the dissatisfaction among retirees regarding the smaller COLA increase. It effectively emphasizes personal experiences, making it relatable, yet lacks broader economic context that could enhance understanding. “ 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 recipients will get smaller increase than in past years
Oct. 10 / Dailykos / Discusses the upcoming COLA increase, emphasizing the financial struggles of retirees. While informative, it could delve deeper into the legislative efforts to shift to the CPI-E for better outcomes. “ WASHINGTON — Millions of Social Security recipients will get a 2.5% cost-of-living increase to their monthly checks beginning in January, the Social Security...