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Social Security recipients may be receiving more than expected next year due to accelerated inflation.
The Senior Citizen League, a nonpartisan group that focuses on ensuring seniors receive the benefits they've earned, estimated a 3% cost-of-living adjustment (COLA) in 2025 based March inflation data showing that the consumer price index rose 0.4% from the previous month and 3.5% from the same month last year, FOX Business reported. Both figures were much higher than anticipated, showcasing the continued growing inflation rate.
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July, August and September is used to calculate the annual Social Security change, with the CPI-W also seeing an increase of 3.5% in March. The estimated increase of 3% in 2025 is actually less than the past two years, with recipients previously seeing an 8.7% increase in 2023 and 3.2% bum from 2024, but still higher than the 2.6% average increase reported during the last two decades.
A 3% increase would raise the average retiree benefit of $1,907 to about $57.21 monthly, according to FOX Business. The Social Security Administration is scheduled to release its final adjustment percentage in mid-October as inflation continues to create severe financial pressures for Americans paying more for necessities.