(NEXSTAR) – The Social Security Administration is less than two weeks away from announcing the Cost of Living Adjustment (COLA), a percentage increase in recipient payments designed to offset inflation.
According to the latest estimates, the COLA forecast is expected to be approximately 2.5%but we'll have to wait for the October 10th announcement to know for sure.
This estimate comes from the Senior Citizens League (TSCL) and is based on: decline Consumer price inflation rose from 2.9% in July to 2.5% in August.
“Ensuring seniors have adequate food and shelter with dignity is a key reason we advocate for a minimum 3% COLA,” TSCL Executive Director Shannon Benton said in a news release. said. “According to TSCL research, approximately two-thirds of seniors rely on Social Security for more than half of their monthly income, and 28% are completely dependent on Social Security.”
The expected COLA increase is lower than in 2024, when beneficiaries received a 3.2% increase.
The Social Security Administration calculates the COLA using average inflation data from the Consumer Price Index for July, August, and September.
There was never a negative adjustment, but the COLA dropped to 0% in 2010, 2011, and 2016. The highest COLA in the past 20 years was 8.7% as the US experienced an inflation spike in 2023. The previous high was in 1980. At 14%, Viewing SSA tables.
TSCL says studies show that the combination of rising medical costs and inadequate COLAs has reduced the purchasing power of these income gains by “more than 30 percent.”
For example, rising Medicare costs are not included in COLA calculations, and some politicians have proposed changes.
“Monthly Social Security checks are a way for most seniors to make ends meet, and they are needed to pay bills, copays, and drug costs,” said Rep. Ruben Gallego, D-N.C. Arizona State) said. How to increase senior benefits and COLAs In March.
The bill has been introduced and referred to the Finance Committee, but has not yet been voted on in the House.
