Unrelenting inflation and skyrocketing costs of living have resulted in significant wage increases in several sectors, as well as annual adjustments made by the Social Security Administration (SSA). As a result, more than 70 million beneficiaries will get an increase in the money they can expect to receive in 2025.
The U.S. Bureau of Labor Statistics (BLS) announced that the Consumer Price Index for All Urban Consumers (CPI-U) indicated a 2.5% increase in prices over the past year, specifically from August 2023 to August 2024.
This measure, used to assess inflation within the nation, influences the projections for the cost-of-living adjustment (COLA) for monthly Social Security benefits in the coming year.
Increased Social Security funding
The cost-of-living (COLA) increase is expected to result in a 2.5% increase in monthly payments by 2025, which translates into an additional $48 in Social Security checks for retirees and an approximate $38 increase for survivors and people receiving disability benefits.
However, this increase is the smallest since 2021, reflecting government statistics indicating a drop in inflation from the previous year, a fact that does not reassure consumers.
In 2025, it will be 90 years since the Social Security Act was enacted in 1935. Throughout this period, Social Security has generated debates in different administrations and has reflected the fluctuations of the national economy.
