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6 Things That Worry Retired Boomers Most About the 2025 Social Security COLA

DNY59 / Getty Images/iStockphoto
DNY59 / Getty Images/iStockphoto

Are you a retiree who would also be considered part of the baby boomer generation? If so, you might be concerned about the 2025 Social Security change to the cost of living adjustment — or COLA, as it is commonly referred to.

The Social Security Administration (SSA) recently announced that the COLA for 2025 will be 2.5%, down from 2024’s and down significantly compared to 2023’s COLA in response to record inflation.

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According to Chuck Czajka, certified Social Security claiming strategist and founder of Macro Money Concept, this relatively low COLA means that seniors could continue to struggle with keeping up with the high cost of shelter, electricity, hospital and outpatient medical services, just to name a few.

What does this all mean for retired baby boomers and their Social Security COLA for next year? Here are a few things that worry retired boomers most about the 2025 Social Security COLA.

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As a retiree and retirement planner, Marty Burbank shared that one of his biggest concerns for 2025 is that Social Security benefits may not keep up with inflation.

“The COLA for 2025 is adjusted based on inflation rates, but there are worries inflation may rise faster than the COLA,” Burbank said, pointing out how this could put a financial strain on retirees relying heavily on Social Security.

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“For everyone, inflation has gone down, but the price of groceries, insurance, and other living expenses has not decreased and we shouldn’t expect those prices to go down,” said Deborah Lindner, a retiree in Salt Lake City. “My husband and I spend at least $200 each week for food and almost every other product at the grocery store. That amount seems astronomical, and it blows my mind every month I look at our budget.”

Czajka said, “While inflation seems to be easing a bit, consumers, especially older consumers, have not recovered from [the] grocery process the 2020s have seen so far.”

He pointed out that the average grocery prices tracked by the CPI have risen 24%, with eggs being a big part of the increase.

“Eggs have risen 86% since 2020,” Czajka said. “The Senior Citizen’s League says that rising grocery prices have taken a toll on many retirees.”


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