More than half of adults age 50 and older are worried about having enough money for retirement, according to a recent AARP survey.
The Social Security Administration announced Thursday that the 2025 cost-of-living adjustment rate will be 2.5%.
Social Security retirement benefits will increase by about $50 a month on average starting in January, the agency said.
Social Security Commissioner Martin O'Malley said: “Social Security benefits and SSI payments will rise in 2025, helping tens of millions of people keep up with their spending even as inflation begins to subside.”
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The 2.5% COLA is less than the 3.2% adjustment. social security recipient was received in 2024, which would be roughly in line with historical norms, as it averaged 2.6% over the past 20 years.
The cost of living adjustment in 2025 will be the lowest annual increase since 1.3% in 2021.
AARP CEO Jo Ann Jenkins said in a statement: “This adjustment will help older Americans get the relief they need so they can buy essentials from groceries to gasoline more affordably. means,” he said. “Inflation last year took a financial toll, especially on retirees who often rely on Social Security as their primary source of income. Even with this adjustment, many older adults who rely on Social Security We know Americans may be having trouble paying their bills.” ”
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The number of beneficiaries in 2023 increased by 8.7% due to high inflation, the largest increase since the early 1980s.
The Senior Citizens League, a nonpartisan senior citizen organization, cited the cost of living challenges faced by seniors in the United States, finding that 65% of seniors have monthly expenses of at least $2,000. This is up from 55% in 2023, citing the results of the 2024 Retirement Survey.
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The study found that compared to 2023, more seniors are spending at least $4,000 or $6,000 a month, while fewer seniors can live on less than $1,000.
“This year, we are once again missing an opportunity to give older adults the financial relief they deserve by changing COLA calculations from CPI-W to CPI-E. properly reflected,” said Shannon Benton, executive director of Senior Citizen. the league said in a statement Thursday.
