Social Security Benefits Get a Cost-of-Living Adjustment (COLA) in 2025, But the Latest Forecast Is Bad News for Retirees
Inflation has moderated over the past year, but many retired workers are still struggling to make ends meet. Less than 50% of Americans in retirement believe they have enough money, and nearly 90% are worried about rising prices devaluing their savings, according to the 2024 U.S. Retirement Survey from investment manager Schroders.
"Whether it's a trip to the gas station, grocery store or pharmacy, prices in the U.S. have increased noticeably in recent years, and that is particularly challenging for retirees living on fixed income sources," said Deb Boyden, Head of U.S. Defined Contribution at Schroders.
Of course, Social Security benefits get annual cost-of-living adjustments (COLAs) to preserve their buying power as prices rise across the economy. But The Senior Citizens League says that "COLAs have become less and less likely to keep up with inflation over time." Indeed, while benefits received a 3.2% COLA in 2024, two-thirds of surveyed retirees say their expenses increased more than 3.2%.
Source Fool.com
