Social Security COLA Estimates for 2025: Due to inflation, Social Security recipients will receive a greater cost of living adjustment in 2025. This may not be ideal for recipients because rising costs negate any gains.
The Senior Citizens League, a nonpartisan advocacy group, boosted its 2025 long-term cost-of-living-adjustment (COLA) prediction from 1.75 percent to 2 percent. The March Consumer Price Index for Clerical Workers and Urban Wage Earners caused the 3.5% increase.
An approximate monthly increase of $45 would result from a 2.6% increase for the typical beneficiary. The prior year’s 3.2% increase resulted in a monthly benefit increase of approximately $50.
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Senior citizens and other recipients pay outrageous prices, and any future hikes will not be felt until January 2025.
Time is not your friend with Social Security COLAs. The Motley Fool analysts concluded, “Future money is not as valuable as present financial funds.” “This is an ongoing problem concerning Social Security COLAs.” It gets worse when inflation rises. “Unfortunately, inflation is currently increasing rather than decreasing.”
The latest CPI data determines monthly adjusted COLA estimates. Since the final amount for 2025 is determined using the average inflation rate for the third quarter (July, August, and September) and compared to the same period last year, it is likely to deviate from estimates.
TSCL said six months of data collection remain, giving it flexibility to maneuver.
