With summer drawing to a close and minds beginning to focus on colder conditions and holidays, several retirees and beneficiaries of Social Security are anxiously waiting for information regarding the Cost-of-Living Adjustment (COLA) for 2025. Although the Social Security Administration will not make an official announcement until October, it is essential to think ahead and engage in meaningful discussions with loved ones as early as now.
Experts Predict a Moderate Bump
With the last numbers yet to be published, current estimates have shown that COLA will increase by 2.6% to 3% in 2025. In turn, this will mean an approximate rise of say $50 per month for those who are entitled to benefits. Although it is not as drastic as what we have experienced in recent years, which happened due to untypical high inflation, any extra money is always necessary for people with limited income sources.
Keeping Up with Rising Costs
The COLA’s rationale is to keep social security payments in pace with inflation, thereby enabling beneficiaries to afford their necessities. Nevertheless, it is critical to understand that people are affected by inflation differently. Even though overall inflation might be decelerating, some expenditures like housing as well as medical care remain rising at a fast rate.
Conversations with Friends
Discussing the upcoming COLA with friends and family can be a great way to exchange information and support each other. Here are some key points to consider sharing:
- Manage Expectations: While a COLA increase is positive news, it’s important to acknowledge that it may not fully offset rising costs for everyone.
- Plan Ahead: Encourage your friends to review their budgets and consider how the COLA increase will impact their financial situation.
- Beware of Scams: Unfortunately, scammers often use COLA announcements to target vulnerable individuals. Remind your friends to be wary of unsolicited calls or emails claiming to be from Social Security.
- Explore Other Resources: If the COLA increase doesn’t fully meet their needs, suggest looking into other benefits or assistance programs they might be eligible for.
Stay Informed and Supportive
An official notice on the 2025 cost of living adjustment (COLA) will be made in October. Encourage your comrades to visit the Social Security Administration’s website for the latest updates and information. And remember, sometimes just lending a listening ear and offering support can be as valuable as any financial advice.