The latest projection for Social Security benefits in 2025 shows a potential increase of 2.6%, up from the previous estimate of 1.75%. This change is attributed to a rise in inflation, with the March Consumer Price Index for Urban Wage Earners and Clerical Workers coming in at 3.5%. Despite the anticipated uptick in benefits, many seniors are still struggling with rising costs, as highlighted by a survey conducted by advocacy group The Senior Citizens League.
According to Shannon Benton, a director overseeing the estimates for Social Security COLA at TSCL, a 2.6% increase in benefits would only result in about a $45 raise, which may not cover the escalating expenses faced by seniors. The survey conducted by TSCL revealed that 71% of respondents experienced household costs exceeding the 3.2% boost from the previous year, leading many to dip into emergency savings. Food costs were cited as the expense with the biggest increase, underscoring the financial challenges faced by older adults.
Despite the current projection, the final amount for 2025 will likely vary as it is calculated based on the average inflation rate during the third quarter. With six months’ worth of data still to be collected, there is significant room for fluctuations in the estimated increase. The uncertainty surrounding Social Security benefits underscores the ongoing financial strain experienced by seniors in the face of rising costs.
