Will the Social Security COLA increase in 2025? Here’s what Arizonans should know about benefits for 2025
According to azcentral, Social Security benefits, which support over 71 million Americans, are subject to annual cost-of-living adjustments (COLA). This adjustment ensures that benefits keep pace with inflation, maintaining their purchasing power. For 2024, the COLA was set at 3.2%, but what can beneficiaries expect for 2025?
Estimated COLA Increase for 2025
Current projections suggest a 2.57% increase in COLA for 2025. This adjustment is anticipated to add approximately $50 to monthly benefits. However, this increase might not fully cover the rising costs for seniors.
Impact on Seniors and Additional Considerations
According to a 2024 Seniors League study, retirees would need an additional $370 per month to match their buying power from 2010. Moreover, the 2.57% estimate does not account for potential increases in Medicare Part B premiums, which could further affect beneficiaries’ net gains.
Stay informed about Social Security adjustments and plan accordingly to manage potential shortfalls in your benefits.