How Will the Latest 2.6% COLA Estimate Impact Retirees in 2025?
Retirees may get a bigger Social Security raise than anticipated
Although the COLA projections in January showed seniors would be getting only a small benefits increase in 2025, the most recent estimates from the TSCL from March of this year tell a very different story. Based on the most recent update, the latest projections for the 2025 COLA are coming in at 2.6%.
- If those estimates pan out, older Americans are going to see their benefits jump by substantially more than originally expected. In fact, the typical retiree receiving an average monthly benefit of $1,907 will see around $22 extra in each monthly check with a 2.6% raise.
Don't get too excited about the bigger COLA
The reality is, a bigger raise is not something to be happy about. And when you look at the big picture, it's clear why getting one could portend financial trouble for many retirees.
TSCL is basing its estimate on data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). CPI-W is a price index that's used to measure how costs are changing for urban wage earners and clerical workers. It measures year-over-year price adjustments on a basket of goods and services.
...This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.