Скачать или смотреть Social Security benefits expected to rise in 2025 due to inflation: Key details

Social Security benefits are likely to see a modest cost-of-living adjustment (COLA) increase of about 2.57% in 2025, translating to an additional $47 per month for those receiving the average benefit of $1,840. However, this potential gain could be offset by anticipated rises in Medicare Part B premiums, which are expected to increase by $10.30 per month. While inflation has been cooling, the estimated COLA hike for 2025 would be slightly lower than the 3.2% increase in 2024, reflecting the current economic conditions.

Many retirees are concerned about the impact of inflation on their savings and the rising cost of essentials, with 78% of surveyed seniors noting higher monthly budgets compared to the previous year. Despite this, there's some confusion around how COLA works, with misinformation suggesting that retiring in 2024 would secure the increase. In reality, Social Security automatically adjusts benefits for inflation for those aged 62 and older, regardless of whether they have started receiving benefits, ensuring that retirees receive the COLA even if they delay claiming until full retirement age.

The COLA adjustment process, which is based on inflation data from the third quarter of the year, has been criticized for its timing, as it only happens annually, leaving retirees vulnerable to inflation in the interim. Although the COLA helps protect the purchasing power of Social Security benefits, additional challenges like higher Medicare premiums and tax liabilities on benefits further strain retirees' finances. As inflation stabilizes, there are calls for more frequent COLA adjustments to better match the economic realities faced by seniors.