2024 COLA Boost is History – This Will Be The Next Increase in Retiree Checks and They Won’t Like It

Social Security and other government program beneficiaries keep up to date on changes regarding the government’s annual 2024 COLA Boost (Cost of Living Adjustment). Due to the monthly release of new data, recipients frequently receive inaccurate data about the expected amount, which increases their level of anxiety.

This concern is especially important as the summer comes to an end, with most recent estimates indicating that the COLA for Social Security benefits might decrease in 2025.

2024 COLA Boost

The Senior Citizens League (TSCL), a nonpartisan advocacy group, is expecting a 2.57% COLA increase for 2025, a decline from the 3.2% adjustment that was observed in 2024. This 2024 COLA Boost projection, which is slightly lower than the 2.63% predicted in July, aligns with TSCL’s June estimate.

The expected rise of 2.57% aligns with the historical average COLA increase of around 2.6% over the previous 20 years, showing an overall pattern due to current economic changes, including the reduction in inflation rates.

Social Security COLA Boost 2024

A vital part for determining these adjustments is the current shifts in inflation, which have an impact on the expected COLA. The Consumer Price Index (CPI) shows that inflation decreased from 3.0% in June to 2.9% in July.

Organization	Social Security Administration
Program Name	Cost-of-Living Adjustment (COLA) Boost
Country	USA
2025 COLA Estimate	2.57%
Announcement Date	In October 2024
Category	Government Aid
Official Website	https://www.ssa.gov/

The COLA has been determined using these inflation rates, which are essential since the adjustment is designed to make sure Social Security payments stay in line with the increasing cost of living. The 2025 COLA prediction has been adjusted according to this economic structure, and it now indicates a slight decline in anticipated benefit increases.

Impact of Reduced COLA on Senior Citizens

• For many seniors, the 2024 COLA Boost is crucial since it impacts their ability to pay for necessities.
• The TSCL 2024 Retirement Survey determined that 78% of seniors have seen their monthly expenses for basic needs including housing, food, and medication increase.
• A major problem for retirees, many of whom are on fixed incomes and vulnerable to inflation, is the growth in living expenditures.
• In addition, 71% of seniors fear that their retirement funds may be further depleted by the ongoing rising expenses caused by inflation.

Comparing 2024 COLA Boost Over the Years

• Historically, 2024 COLA boosts have been criticized for not properly maintaining pace with the actual cost of living experienced by seniors.
• The expected 2.57% increase for 2025 is aligns with the average increase over the last two decades.
• Even though this consistency, the increase falls short of fixing growing concerns among retirees.
• A number of seniors express concern that their retirement income would not be sufficient to meet their basic living needs, indicating the drawbacks of the existing COLA formula in maintaining their purchasing power.

Suggested Changes to Improve COLA Accuracy

• To deal with concerns over the accuracy of the existing COLA calculation, a number of changes have been put up.
• One of the suggestions is to switch from the CPI-W to the CPI-E, which better shows the expenditures paid by seniors by putting a higher priority on housing and healthcare.
• Raising the retirement age along with doing away with taxes on Social Security income are two other suggestions as well.
• The fact that none of these suggestions have received much support from legislators shows how urgent it is to establish a fair and achievable cost of living adjustment given the ongoing growth in living expenses.

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