The 2025 Social Security Cost-of-Living Adjustment (COLA) Forecast Just Changed, and It Could Pleasantly Surprise Many Retirees
Social Security is an essential lifeline for many retirees. About half of households with someone age 65 or older receive at least 50% of their income from the program, according to data collected by the Social Security Administration. Without Social Security, millions of seniors would be living in poverty.
Since many seniors are reliant on Social Security for their living expenses, the annual cost-of-living adjustment (COLA) is an important part of their benefits. Beneficiaries receive an increase in their monthly checks based on how much prices increase in the third quarter from year to year. While we haven't reached the third quarter for 2024 yet, analysts are making their best guesses as to what the COLA could be.
Following the most recent consumer price index (CPI) reading from May, The Senior Citizens League updated its forecast. It now expects seniors will get a 2.57% bump in their Social Security checks next year.
Source Fool.com
