Millions of seniors struggling with higher prices were hoping for a substantial bump in their Social Security checks next year.
But that's not going to happen.
The government has just announced that for 2025, monthly checks will increase by 2.5%, which comes to another $50 a month for the average recipient.
Zela White, like so many seniors, struggles to pay for basic repairs to her home in Forest Park.
"Where am I going to go, what am I going to do, because it's getting so difficult," she said.
More than 60 million older Americans like her rely on Social Security checks, and every year they look forward to a cost of living, or COLA, increase.
But this year, many of them are disappointed at the meager raise coming in January 2025.
"I think inflation has been more than 2.5%, and I think it deprives us of what we deserve," Derek Wilson said while picking up groceries.
How government determines the increase
The annual cost of living increase is based on a simple formula: The government looks at the rate of inflation the past 12 months and then sets the increase accordingly.
Recent increases have been:
- In 2025: A 2.5% increase, mirroring the latest CPI government inflation numbers.
- For 2024: 3.2%.
- For 2023: during peak inflationary times it was 8.7%.
But several seniors we spoke with say 2.5% doesn't come close to keeping up with rising medical bills, auto insurance and property taxes.
"Well it's sad, it's a hardship, needless to say," Willie Metzendorf said.
Senior advocates agree, saying so many people depend on their monthly check, and for them, it can be a life saver.
And they say the increase does not accurately reflect the inflation seniors deal with on a daily basis, such as health care costs.
For that reason, several members of Congress have been pushing what they call a "Fair COLA Act" for several years, but it has yet to pass.
If inflation were to surge again next year, checks would have a bigger increase for 2026.
But no one is really hoping for higher inflation, so for now the raise is 2.5%, not a nickel more.
As always, don't waste your money.
____________________________________
As always don't waste your money.
"Don't Waste Your Money" is a registered trademark of Scripps Media, Inc. ("Scripps").
Follow John:
- Facebook:John Matarese Money
- Instagram: @johnmataresemoney
- X/Twitter: @JohnMatarese
Follow Taylor:
- Facebook: Taylor Nimmo
- Instagram:@tnimms
- X/Twitter: @tnimms
For more consumer news and money saving advice, go to www.dontwasteyourmoney.com
