Social Security Recipients to Receive Slight Benefits Boost Next Year

Inflation seems to be cooling off and while that is good news for shoppers, it’s bad news for America’s retirees. The Social Security Administration just announced that its 2025 cost-of-living adjustment (COLA) will be 2.5 percent. On average, that should provide retirees with an extra $48 per month.

While we are all thankful for any COLA, it could be more. The Seniors Trust supports the Social Security Expansion Act, which calls for using the use the Consumer Price Index for the Elderly, or the CPI-E, to calculate the annual COLA, rather than the Consumer Price Index for Urban Wage Earners and Clerical Workers, or the CPI-W, currently used. The CPI-E specifically tracks the spending of households with people aged 62 and older. It places greater value on rising costs of expenses unique to seniors such as housing, healthcare and medicine. This would provide a much fairer cost-of-living adjustment for retirees.