American bank accounts are still feeling the impact of inflation as the country emerges from the pandemic. This includes retirees and individuals who depend on Social Security.
The Senior Citizens League, a nonpartisan organization dedicated to addressing issues impacting older Americans, has revised its projection for the 2025 Social Security cost-of-living adjustment (COLA). Based on the latest March inflation data, they now anticipate a 2.6% increase, up from the previous estimate of 1.7% just a month ago.
The February data indicated that the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 3.5%, which is higher than expected.
Social Security beneficiaries experienced a 3.2% increase in their monthly checks this year, and an impressive 8.7% increase in 2023. These figures surpass the average cost-of-living adjustment (COLA) of 2.6% in recent years, as reported by FOX Business News.
The Social Security Administration typically reveals the upcoming year’s COLA adjustments in mid-October. These adjustments are based on the CPI-W data collected from July through September.
According to officials from the Senior Citizens League, even if the number turns out to be accurate, it might not be sufficient.
According to the March report, TSCL director Shannon Benton expressed that if the COLA increases by 2.6%, it would only result in an approximate $45 increase. However, this amount may not be sufficient to purchase a significant amount.
Furthermore, she mentioned that the organization is actively investigating the implications of this for the decreasing purchasing power of senior citizens.
In the meantime, those who are impacted simply have to bide their time.
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