Bad News for Retirees: Social Security COLA Update 2025 Revealed


  • Retirees are bemoaning the Social Security COLA update for 2025.
  • That COLA increase is only 2.6%.
  • There are worries this won’t keep up with inflation.
Social Security COLA Update - Bad News for Retirees: Social Security COLA Update 2025 Revealed

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The Social Security cost-of-living adjustment (COLA) update for 2025 is out and it’s not presenting retirees with any information they want to hear.

The bad news for retirees in that Social Security COLA update is that it will only increase by 2.6% in 2025. It’s worth noting that this is one of the smallest increases recently compared to the 3.2% in 2024 and 8.75% increases last year.

Shannon Benton, a director of The Senior Citizens League, said the following about this Social Security COLA update to Kiplinger:

“If the COLA increases by 2.6%, that will be an approximately $45 increase. What can you buy for that? Not much.”

Social Security COLA Update 2025 Details

The reason for the 2.6% increase has to due with how COLA is calculated. This has to do with economic data from the third quarter of each year. Considering hopes for falling inflation were high during that period, it makes sense that the COLA update isn’t as high as retirees were hoping.

Considering the ongoing trouble with inflation, this isn’t what retirees wanted to hear. There is hope on the horizon as the Federal Reserve may cut interest rates later this year if inflation pulls back.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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