Social Security's Cost-of-Living Adjustment (COLA) Is Set to Disappoint for a 5th Time in 6 Years, and the Reason Why Is Clear as Day
In May, a little over 51 million retired workers took home an average Social Security benefit of $1,916.63, which works out to about $23,000 on an annualized basis. While Social Security payouts aren't going to make anyone rich, they've historically played a key role in laying a financial foundation for America's aging workforce.
According to an analysis from the Center on Budget and Policy Priorities, this leading program lifted 22.7 million people above the federal poverty line in 2022 -- 16.5 million of whom were adults aged 65 and over. Meanwhile, 23 consecutive years of surveys from national pollster Gallup have found that between 80% and 90% of retirees rely on their monthly Social Security income to cover at least some portion of their expenses.
Social Security income is vital to the financial well-being of retired workers, which is why beneficiaries wait on pins and needles for the annual reveal of the program's cost-of-living adjustment (COLA). While Social Security's 2025 COLA is on track to do something not seen in 28 years, it's also poised to disappoint the retired-worker beneficiaries who count on the program most.
Source Fool.com
