The Social Security Administration don announce say the cost of living adjustment (COLA) for 2025 go be 2.5 percent. Dis announcement come out on Thursday morning, and it mean say over 72 million beneficiaries go see an increase in their monthly payments starting from January 2025.
The 2.5 percent increase go add about $49 to the average monthly Social Security retirement benefit, moving it from $1,927 to $1,976. For survivors, the benefit go rise from $1,788 to $1,832, and for Social Security Disability Insurance (SSDI), it go increase from $1,542 to $1,580.
Although dis increase look small compared to recent years, especially the 8.7 percent increase in 2023 and the 3.2 percent increase in 2024, it still higher than some historical trends. However, many seniors dey express frustration because dem feel say the increase no match the high prices dem dey see for everyday goods and services.
Financial experts like Alex Beene and Kevin Thompson talk say the easing inflation, though good for the economy, no mean say prices go drop drastically. Instead, prices still dey rise, just at a slower rate. Dem also mention say housing and medical expenses, which increase by 4.9 percent and 3.6 percent respectively, still pose significant challenges for retirees.
There be calls for a reevaluation of the methodology used to calculate COLA to better reflect the real costs seniors face in their daily lives. The current method use the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which some critics say no fully capture the inflationary pressures seniors experience.
