The Social Security Cost-of-Living Adjustment (COLA) for 2025 May Be Less Than You Expect. What That Means for Your Retirement.
Millions of seniors rely on Social Security, with some so dependent on their benefits that it's their primary source of income in retirement. Around 1 in 5 adults over age 50 even say they have no other retirement income outside of their benefits, according to a 2023 report from the Nationwide Retirement Institute.
For those depending on Social Security to pay the bills, the annual cost-of-living adjustment (COLA) can be a lifesaver. The COLA is an annual boost in benefits that aims to help Social Security maintain its buying power over time. In 2024, the COLA was 3.2%, increasing the average retired worker's benefit from $1,848 per month to $1,907 per month.
The COLA is based on third-quarter inflation data, and the Social Security Administration (SSA) will make its official announcement in October after the September inflation report is released. But some experts are already forecasting the 2025 COLA, and there's both good and bad news about where it might land.
Source Fool.com
