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COLA Increase 2025 Calculator: How Is the Next COLA Increase Determined?

Current estimates indicate a 2.6% increase for 2025, which, while lower than the past three adjustments, is in line with the average over the past decade.

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COLA Increase 2025 Calculator
COLA Increase 2025 Calculator

COLA Increase 2025 Calculator: Recently, the index that determines the cost-of-living adjustment (COLA) for military retirees, Social Security recipients, and others has increased significantly, surpassing last year’s inflation rate.

Current estimates indicate a 2.6% increase for 2025, which, while lower than the past three adjustments, is in line with the average over the past decade.

“We are closely monitoring the trend in the index to provide our members with insights into their future finances,” said a spokesperson from the Military Officers Association of America (MOAA). “Many of our members rely on COLA adjustments from various sources, so it’s important for them to stay informed about potential changes.”

Among MOAA’s members are many who receive COLA from sources such as the Department of Defense (DoD), Veterans Affairs (VA), and Social Security. VA benefits are not automatically covered by the COLA.

Congress has proposed reducing or eliminating COLA for military retirees in the past.

Some legislators may seek new funding sources despite concerns about rising debt and tighter budgets.

“We’ve seen proposals in the past that aimed to change how the COLA is calculated or even eliminate it altogether,” the spokesperson explained. “These changes could significantly impact those on fixed incomes, including military retirees and VA disability recipients.”

In 2025, seniors and retirees may see modest COLA increases

Altering the Consumer Price Index used to determine COLAs could result in substantial savings, but at the expense of those relying on them.

“It’s a significant amount of money, but it’s crucial for us to advocate for our members and work with other advocacy and veterans groups to ensure that any proposed changes are fair and considerate of those who have served our country,” emphasized the spokesperson.

In order to protect the interests of military retirees and other COLA recipients, MOAA has closely monitored these proposals for decades.

There will be no official announcement of the 2025 Social Security COLA until October, but speculation is rampant.

According to the latest forecast from The Senior Citizens League, the 2025 Social Security COLA will be 2.6%, down from this year’s 3.2%.

Since 2020, this would be the smallest increase.

CPI-E would turn the government’s 2.6% COLA into a 2.8% COLA, slightly increasing benefits. This change has been advocated for years, but the government hasn’t budged.

Also Read: COLA Increase 2025 Release Date: Discover When Next Year’s Adjustment Will Be Unveiled

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