Cleveland, Ohio – American retirees and Social Security beneficiaries are bracing for the impact of rising inflation in the aftermath of the pandemic. According to the Senior Citizens League, the 2025 Social Security cost-of-living adjustment (COLA) is projected to be 2.6% based on March inflation data, marking an increase from the previous month.
This anticipated COLA increase follows a 3.2% raise in monthly checks for Social Security recipients this year, with an even more significant 8.7% increase expected in 2023. The average COLA in recent years has hovered around 2.6%, indicating a consistent trend of adjustments for beneficiaries.
While the official announcement of the COLA adjustments by the Social Security Administration is typically made in mid-October, the projections have already sparked concerns among retirees and advocates. Shannon Benton, director of TSCL, expressed worries about the limited impact of a $45 increase in light of the current economic climate.
The implications of these adjustments are far-reaching, particularly for seniors who rely heavily on Social Security for their livelihood. The ongoing analysis by nonprofit organizations like TSCL underscores the pressing need to address the challenges faced by retirees in maintaining their purchasing power.
As retirees and beneficiaries await further developments, the broader economic landscape continues to evolve, presenting both opportunities and challenges for those dependent on fixed incomes. The impact of inflation on Social Security underscores the importance of proactive measures to safeguard the financial well-being of older Americans in the face of economic uncertainties.