Reported 8 months ago
In May, 51 million retired-worker beneficiaries received an average Social Security check of $1,916.63. The annual cost-of-living adjustment (COLA) is crucial for retirees, with 80% to 90% relying on it as a key income source. The COLA is determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The latest report anticipates a 2.57% COLA for 2025, down from a previous estimate of 2.66%. If this holds true, it would be the first time since 1997 that there have been four consecutive years of COLAs over 2.6%. Despite recent boosts, seniors' purchasing power has diminished due to inflation outpacing COLAs, mainly because the CPI-W does not reflect seniors' spending habits effectively.
Source: YAHOO