A latest AARP survey finds over half of adults over 50 are apprehensive about having sufficient cash for retirement
The Social Safety Administration on Thursday introduced that the cost-of-living adjustment for 2025 will probably be 2.5%.
Social Safety retirement advantages, on common, will enhance by roughly $50 monthly beginning in January, the company mentioned.
“Social Security benefits and SSI payments will increase in 2025, helping tens of millions of people keep up with expenses even as inflation has started to cool,” mentioned Social Safety Commissioner Martin O’Malley.
AMERICANS REVEAL THEIR BIGGEST FINANCIAL REGRET ABOUT POTENTIAL RETIREMENT
The two.5% COLA is lower than the three.2% adjustment that Social Safety beneficiaries acquired in 2024, however can be roughly consistent with the historic norm – because it’s averaged 2.6% during the last 20 years.
The price-of-living adjustment for 2025 is the bottom annual enhance since 2021, when it was 1.3%.
“This adjustment means older Americans will receive needed relief to help better afford essential items from groceries to gas,” AARP CEO Jo Ann Jenkins mentioned in an announcement. “Inflation took a financial toll this past year, particularly on retirees, who often rely on Social Security as a key source of income. Even with this adjustment, we know many older Americans who rely on Social Security may find it hard to pay their bills.”
THE ‘MAGIC NUMBER’ TO RETIRE COMFORTABLY HITS A NEW ALL-TIME HIGH
In 2023, beneficiaries noticed an 8.7% enhance, the biggest because the early Eighties, attributable to excessive inflation.
The Senior Residents League, a nonpartisan senior group, famous the price of residing challenges dealing with older People and cited findings from its 2024 Retirement Survey that discovered 65% of seniors had month-to-month bills of a minimum of $2,000 – a rise from 55% in 2023.
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That survey discovered that extra seniors are spending a minimum of $4,000 or $6,000 monthly in contrast with 2023, whereas fewer had been capable of get by on $1,000 or much less.
“This year represents another lost opportunity to grant seniors the financial relief they deserve by changing the COLA calculation from the CPI-W to the CPI-E, which would better reflect seniors’ changing expenses,” Shannon Benton, govt director of The Senior Residents League, mentioned in an announcement on Thursday.
