The $49/month COLA Increase 2025 is talked about in this piece. The COLA for next year is expected to be 2.63%. Is that enough? The rumor about the $49-a-month COLA increase is getting a lot of attention, but many people don’t seem happy with the change. Keep reading to learn more about the $49 monthly COLA raise in 2025.
$49 per month COLA increase in 2025
Millions of retired people count on Social Security benefits to pay for their daily needs. About 60% of them see these benefits as a big source of income, while 28% see them as minor ones. For married people in the US who don’t have kids, the cost of living each year is $60,000.
This is the average in the United States. This number may be different for you based on your lifestyle and personal tastes. The Cost of Living Adjustment is something that retirees look forward to every year. It helps them keep up with inflation by possibly increasing their benefits. But this change might not be as necessary as was thought.
The expected COLA for next year is 2.63%.
According to the Senior Citizen League, the COLA will go up by 2.63 percent in 2025. However, the Social Security Administration won’t say the exact number until October. Even though the change to benefits is good news, it may not have a big effect on seniors’ finances.
A group called the Senior Citizens League says that Social Security has lost 36% of its purchasing power since 2000. This means that old people today would need an extra $516.70 a month to buy the same things and services as they did in 2000.
Is an extra $49 a month enough?
As of late, the usually retired worker gets about $1,900 a month. If the COLA for 2025 is 2.63%, it will mean that the average senior gets about $49 more each month. Experts say that a single adult needs at least $30,000 a year to live comfortably. All of this, though, depends on where you live.
The cost of living is going up for a lot of people, so this raise might not be enough to cover it. A study by the Senior Citizen Leagues found that between 2022 and 2023, the monthly costs of two-thirds of seniors went up by 10%.
News about the $49/month COLA increase
The expected COLA of 2.63% for 2025 might not be enough to meet the wants of retirees. The COLA is supposed to help people deal with rising prices, but it doesn’t always do that. The COLA is meant to help seniors keep up with the price hike, but it is clear that it is not matching the real costs they are facing, says Mary Johnson, a policy analyst at the Senior Citizens League.
Healthcare prices, which make up a big part of a retiree’s budget, have been going up faster than inflation. This means that seniors will still have a hard time paying for their medical care even after the COLA rises. This makes the effect of COLA even less important.
