Social Security's scheduled cost of living increase 'won't make a dent' for some retirees

[mahatmakanejeeves]

Associated Press Finance
Social Security's scheduled cost of living increase 'won't make a dent' for some retirees

FATIMA HUSSEIN
Wed, October 9, 2024 at 11:23 AM EDT 3 min read

WASHINGTON (AP) — Sherri Myers, an 82-year-old resident of Pensacola City, Florida, says the Social Security cost-of-living increase she'll receive in January “won't make a dent” in helping her meet her day-to-day expenses.

“Inflation has eaten up my savings," she said. “I don’t have anything to fall back on — the cushion is gone.” So even with the anticipated increase she's looking for work to supplement her retirement income, which consists of a small pension and her Social Security benefits.

About 70.6 million Social Security recipients are expected to receive a smaller cost of living increase for 2025 than in recent years, as inflation has moderated. The Social Security Administration makes the official COLA announcement Thursday, and analysts predicted in advance it would be 2.5% for 2025. Recipients received a 3.2% increase in their benefits in 2024, after a historically large 8.7% benefit increase in 2023, brought on by record 40-year-high inflation.

“I think a lot of seniors are going to say that this is not really enough to keep up with prices," said AARP Senior Vice President of Government Affairs Bill Sweeney. ... The silver lining is that it's an indication that inflation is moderating, he said.

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