The Social Security Cost-of-Living Adjustment (COLA) Forecast for 2025 Was Just Revised Lower, but Retirees May Have a Bigger Problem
Social Security recipients get an annual cost-of-living adjustment (COLA) to protect the buying power of their benefits from inflation. However, more than two-thirds of retirees surveyed by The Senior Citizen Leagues said the 3.2% COLA in 2024 was too small, meaning benefits did not increase enough to cover their elevated expenses.
Unfortunately, those retirees may face more financial difficulties next year. Social Security benefits were already projected to get a smaller COLA in 2025, but the forecasted pay raise was recently revised even lower. Additionally, the fact that so many retirees are struggling with inflation suggests that benefits have lost buying power, which could signal a bigger problem.
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Source Fool.com