2025 COLA Payment Schedule: One of the most important sources of income for a sizeable section of the elderly and disabled population is the Social Security benefits they receive. Considering its major impact on their monthly costs, beneficiaries hold knowledge relevant to any pertinent facts, particularly concerning the cost-of-living adjustment (COLA).
Each year, the Social Security Administration (SSA) makes adjustments to the amount of the yearly payment to provide claimants with assistance in managing the effects of rising prices. In preparation for the Social Security Administration’s expected announcement, a great number of recipients are planning their spending for the following year.
The Social Security Administration (SSA) uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the third quarter to calculate the cost of living adjustment (COLA). As a result, the Social Security Administration (SSA) publishes the official cost-of-living adjustment (COLA) in October each year.
The Social Security COLA estimate for 2025 has risen throughout the year due to inflation beyond the Federal Reserve’s 2% target. 1.75 percent in January, 2.4 percent in February, and 3 percent in March.https://t.co/oDvmT4DQig
— WibliqX (@WibliqX) May 15, 2024
Forecast of the COLA
Even though the Social Security Administration (SSA) will not reveal the official data until October, national groups and experts have already started projecting the possible increase in Social Security benefits that could occur in 2025.
The nonpartisan Senior Citizens League predicts a 2.6% cost-of-living adjustment (COLA) in 2025. The current value is the lowest in five years after growth of 5.9% in 2022, 8.7% in 2023, and 3.2% in 2024. However, it exceeds the group’s February 1.7% projection.
It is important to take into consideration that this number is based on an unofficial forecast. It is not until the Social Security Administration (SSA) releases its official declaration that the specific quantity of the increase will become evident. A drop in cost-of-living adjustments (COLA) might also be beneficial, contrary to what one might initially believe.
— WibliqX (@WibliqX) May 17, 2024
Social Security COLA Increase Criticized as New Estimate Revealed
The term “decrease in COLA” refers to what exactly?
A drop in the increase could potentially result in a deceleration of price hikes in the subsequent year, which is in line with the projections of experts. This is so because inflation is what determines the cost-of-living adjustment (COLA).
The IMF predicts a 1.8% inflation rate in the US in 2025, while the OECD predicts a 2% increase by the first quarter of 2026.
We continue to have a pessimistic forecast for the economy for the following year. Despite this, even a slight increase in Social Security income could be of aid to a sizeable section of the senior population in terms of achieving their fundamental requirements.
Social Security COLA Estimate for 2025 Increases, but Medicare Part B Premium could Cancel it Out
