How COLA works
COLA is using a specific formula to ensure benefits keep up with inflation. Last year, benefits increased, by 3,2%, so the beneficiaries claimed $50 extra per month.
COLA is usually announced in the fall, considering that it uses third-quarter inflation numbers. So, the cost-of-living adjustment amounts will be announced on October 10, this year. However, nothing changes until next year. The benefits will be paid to beneficiaries starting from January and the exact amounts for each individual will be announced earlier, in December.
Cost-of-living adjustments are extremely important to keep up with inflation and help retirees cover their monthly expenses, that is why everyone is waiting for the next year’s plan.
Here are the 3 most important changes regarding the 2025 Social Security benefits:
1. Social Security cost of living adjustment
The adjustment is more likely to be smaller than in 2024. The projected COLA for 2025 is 2.5%. It’s best on the August CPI numbers, which is the second of three sets of numbers the SSA will use to determine the 2025 COLA.
It’s important to remember that a decline in the inflation rate means prices will rise more slowly, but it doesn’t address the already high costs of essentials like food, utilities, or housing that many people find difficult to afford. The Kiplinger Inflation Outlook noted in July that grocery and energy prices have remained fairly stable and that housing expenses are expected to decrease more than they currently have.
4 Responses
Thank you for your information it was beneficial
Trump will fix it.
Every time Democrats are in office, the 3 months where the COLA is decided, suddenly prices come down ( lowering the COLA ) even the 2022 – 2023 8.9 % was lower than the Inflation before and after August to October ( before the 3 months its decided inflation was hitting 12 % and more. )under Obama in 2013 and 2014 there was 0 COLA, as Obama announced ” it will cost you nomore to live in the country this year, as it did last year ” 2 weeks later Gas was almost $4.00 a gal
Who wants to vote for Kamala since she has stated she will take money from Social Security to give to illegal aliens for health insurance and income.