Let Down: Seniors Disheartened by Social Security 2025 COLA Increase
Seniors and Americans with disabilities are expressing disappointment as the projected 2025 Social Security cost-of-living adjustment (COLA) reveals potential inadequacies in addressing the surging cost of everyday living. In 2023, Social Security payments experienced a notable 8.7 percent increase, followed by a more conservative 3.2 percent COLA in 2024, resulting in a mere $50 raise for most beneficiaries.
Initial estimates for 2025 predicted a meager 1.75 percent COLA, raising concerns among recipients. However, a recent projection from the Senior Citizens League provides a slightly more optimistic outlook, suggesting a 2.4 percent COLA for 2025.
The frustration among seniors is palpable, particularly as inflation continues to impact essential purchases such as groceries, housing, and healthcare. In February, the Consumer Price Index (CPI) for goods and services rose by 3.2 percent, contributing to the higher COLA projection.
The Bureau of Labor Statistics reported a 5.7 percent year-over-year increase in shelter costs and a 1.1 percent uptick in medical services, adding to the financial strain faced by seniors.
Insights from a January survey conducted by the Senior Citizens’ League shed light on the challenges seniors are currently grappling with. The survey revealed that seniors faced price hikes on household goods, with 93 percent experiencing monthly expense growth exceeding $59 in 2023.
Additionally, 43 percent reported monthly expenses climbing by more than $185. These findings underscore the financial strain on seniors and raise concerns about the potential insufficiency of the proposed boost in Social Security payments to cover impending inflation.
Beyond the challenges of inflation, seniors also face additional financial burdens due to the prospect of increased taxes resulting from higher income tax brackets.
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Approximately 25 million Americans over 60, living at or below 250 percent of the federal poverty line, find themselves navigating the dual challenges of inflation and potential tax implications. For seniors contemplating reentering the workforce to alleviate financial strain, the need for a more substantial increase in benefits, coupled with a decline in persistently high prices, is evident.