2025 Social Security COLA Forecasts Recede Slightly - June, 2024
2025 Social Security COLA Forecasts Recede Slightly - June, 2024
https://www.wealthwisefg.com/10-essential-financial-documents-to-keep-foreverThe latest estimates for the 2025 Social Security cost-of-living adjustment (COLA) have slightly decreased, reflecting a moderation in inflation. As of the most recent data, the projected COLA is now around 2.66%, down from previous estimates of 2.74%. 1
The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures the changes in the prices of goods and services typically purchased by working households. 2 The Social Security Administration uses the average CPI-W data from the third quarter of the current year compared to the third quarter of the previous year to determine the COLA.
Despite the slight decrease, the projected COLA for 2025 is still higher than the 2024 COLA of 3.2%. However, it's important to note that the actual COLA for 2025 will depend on the inflation data from the third quarter of 2024.
The Senior Citizens League, a non-partisan advocacy group, has been closely monitoring the COLA forecasts and has been updating its estimates regularly. The group's latest update shows a slight decrease in the projected COLA for 2025. 3
While the COLA is intended to help Social Security beneficiaries keep up with the rising cost of living, some seniors have expressed concerns that the COLA does not fully reflect the expenses they face. In a recent survey conducted by The Senior Citizens League, many respondents indicated that their household expenses had increased significantly in the past year, outpacing the COLA they received. There have been rumors and rumbling of a $600 monthly increase to Social Security, however, this is not verified and is likely to be false.
As the Social Security Administration continues to monitor inflation data and make adjustments to the COLA, seniors are advised to plan their finances accordingly and consider other sources of income to supplement their Social Security benefits.
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3- Press-Brief-061224.pdf (seniorsleague.org)
TC142494(0624)1
Guide to Maximizing Your Social Security Benefits