Reported 5 months ago
The article discusses the potential impact of the April inflation report on Social Security's 2025 Cost-of-Living Adjustment (COLA). The COLA is an adjustment mechanism used by the Social Security Administration to keep benefits in line with inflation, and beneficiaries are hoping for an increase in their benefits. The article highlights that the inflation rate remains above the Federal Reserve's target due to high core inflation, and forecasts suggest a potential 2.7% increase in the 2025 COLA. However, the categories driving this increase, such as shelter and medical care services, are experiencing inflationary pressures that may outpace the COLA, potentially leading to a loss of purchasing power for retirees.
Source: YAHOO