The Bureau of Labor Statistics will be releasing the May Consumer Price Index (CPI) report that will give seniors more information about the 2025 Cost-of-living Adjustment (COLA) that could potentially be added to their Social Security benefits next year.
TSCL Estimates 2.7% COLA for Social Security Payment in 2025
This year, the Social Security Administration (SSA) provided retirees and other beneficiaries of their programs with a 3.2 percent increase.
Over the past 12 months, the CPI-W has seen a significant increase of 3.4%, surpassing the Federal Reserve's desired long-term inflation rate of 2%.
Due to persistent core inflation, which excludes food and energy costs, The Senior Citizens League (TSCL), a nonpartisan senior advocacy group, has raised its long-term projection for Social Security's 2025 COLA.
According to TSCL, the 2025 COLA is projected to be 2.66%, which would round up to 2.7%. It's important to note that these calculations do not yet include the months that have the most impact on the final result.
If the information is correct, this would barely signify a fourth consecutive year of beneficiaries receiving above-average COLAs.
According to Motley Fool via MSN, retired workers, as mentioned earlier, received an average check of $1,915.26 in April. With a 2.7% COLA, they can expect a $52 monthly increase next year.
Simply put, if this prediction holds true, the typical retired worker would receive a monthly income of approximately $1,967.
SSA Calculates Annual COLA Using CPI-W Figures
The annual COLA is determined by the SSA through a comparison of the average CPI-W figures for July, August, and September with the corresponding figures from the previous year. The CPI-W for these three months in 2023 had an average of 301.253.
In April, the CPI-W recorded a value of 307.811. If the COLA calculation was based on comparing these two figures, it would result in a 2.1 percent increase, AS USA via MSN reported.
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