Social Security Cost-of-Living Adjustment (COLA) Forecast for 2025: Good and Bad News for Retirees
Current Status of the Social Security COLA Forecast
The Social Security Cost-of-Living Adjustment (COLA) forecast for 2025 was recently updated. As it stands, the official COLA cannot be determined until the third-quarter CPI-W data is released in October. The CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) is crucial for measuring inflation.
Impact on Retirees
This adjustment is pivotal as it affects retirees' income sources. The anticipated changes could lead to variations in monthly benefit payments. Here’s a summary of the anticipated impact:
- Positive Adjustments: Increased cost-of-living adjustments that aim to keep pace with inflation.
- Negative Adjustments: Shortfalls if inflation rates exceed forecasts, which may affect purchasing power.
What to Watch For
Investors and retirees must keep an eye on upcoming reports and economic indicators. These will provide a clearer picture of how inflation trends may influence future COLA announcements.
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.