Understanding the Social Security COLA 2025 Payment Schedule
Impact of Inflation on Social Security COLA 2025
As inflation rates have dropped to their lowest levels in three years, Social Security recipients are likely to see the smallest cost-of-living adjustment (COLA) projected for 2025 since 2021.
- 2022 saw a 5.9% increase
- 2023 delivered an 8.7% adjustment
- Now, a forecasted 2.57% increase looms for 2025
This change may come as a shock, especially for nearly 68 million retirees, after recent years of substantial increases.
Projected Increases and Economic Concerns
According to the Senior Citizens League, the new COLA translates into approximately $49 more per month based on the average benefit of $1,900.
Yet, as some workers experience ascending wages, older Americans express concern over managing expenses, with surveys showing 78% of seniors have higher monthly costs for essentials.
- COLA adjustments rely heavily on third-quarter inflation
- Adjustments are determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)
- Advocates argue that the CPI-W does not reflect older Americans' spending accurately
The forthcoming COLA announcement is anticipated with most distributions expected in recipients’ January checks. The conversation surrounding the adequacy of these adjustments remains critical as economic pressures mount.
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.