The Social Security Administration announced a rate of 2.5%. living expenses The 2025 adjusted amount (COLA) is lower than the 3.2% increase in 2024 and the 8.7% increase in 2023. A recent U.S. government survey of Americans age 62 and older found that many Social Security recipients are worried about the small increase in COLA. atticus.
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The survey found that 96% of seniors receiving Social Security benefits felt the 2.5% COLA increase was insufficient, and 80% were dissatisfied with the adjustment. With lower COLA increases, 87% of seniors plan to supplement their Social Security income in 2025.
This is the plan of the seniors. make up for them social security income Next year.
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According to the survey, 35% of older adults are considering a second job, 27% are considering freelance work, and 24% are planning part-time employment. Additionally, 11% plan to take on contract work.
“These options are one of the best ways to supplement Social Security income because they are flexible and can be tailored to an individual's skills and interests,” said Merritt Ryan, Senior Reactive Data Analyst. ” he said.
“Side hustles and freelance work, in particular, allow older adults to set their own hours and work at their own pace, and part-time work provides a steady source of income without the need for full-time employment. “I do,” she continued. “These approaches not only ease the financial burden, but also help older adults stay active and engaged.”
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Nearly one in five seniors (19%) said they would take money out of their retirement savings to compensate for a lower COLA. Unplanned withdrawals can ultimately negatively impact your financial future.
“[This] Funding for future needs could be significantly depleted,” Ryan said. “While this approach is attractive in the short term, it may have the lasting consequence of leaving older adults vulnerable in later life.”
The survey found that 11% of seniors plan to sell or downsize their assets.
“[This] “While this decision may provide immediate relief, it could limit long-term fiscal flexibility and stability,” Ryan said. “It is important to prioritize sustainable options over stopgap solutions.”
