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The Social Security Administration announces the cost-of-living adjustment, or COLA, for 2025 in October.
This adjustment is designed to help seniors keep pace withinflation, ensuring that their benefits maintain purchasing power.
For many retirees, the COLA can be a crucial factor in their annual budgeting and financial planning.
However, projections indicate that in 2025, retirees may see a smaller Social Security raise.
COLA 2025 Quick Take
The benefit amount retirees receive each year is directly tied to the COLA.
Though the actual increase wont be definite until October 2024 there just was a 2.9% increase in July.
Simply put, the raise is smaller because your expenses arent increasing too much hopefully.
In contrast, moderate inflation suggests amore balanced economy, which tends to experience less turbulence.
A smaller COLA in 2025 may help alleviate some of this pressure.
Simply put, a smaller raise doesnt mean retirees are being shortchanged.
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