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CLEVELAND (WJW) — Coming out of the pandemic, American bank accounts continue to feel the sting of inflation, and that includes retirees — and those who rely on Social Security.
The Senior Citizens League, a nonpartisan group focusing on issues that affect older Americans, raised its long-term forecast for the 2025 Social Security cost-of-living adjustment (COLA) to 2.6% (up from 1.7% the month prior), after seeing March inflation data.
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) came in at 3.5%, higher than indicated by February data.
This comes after Social Security beneficiaries saw their monthly checks go up by 3.2% this year and 8.7% in 2023. The average COLA in recent years has been 2.6%, according to FOX Business News.
Of course, the Social Security Administration does not officially announce next year’s COLA adjustments — which they base on CPI-W data from July through September — until mid-October.
If the number ends up being correct, Senior Citizens League officials say it may not be enough.
“If the COLA increases by 2.6%, that will be an approximately $45 increase. What can you buy for that? Not much,” TSCL director Shannon Benton said in the March report.
She also said the organization is continuing to explore what this means for seniors’ dwindling purchasing power.
In the meantime, those affected just have to wait.
