A leading financial expert forecasts the lowest cost-of-living adjustment in five years.

Social Security COLA [Photo: The Republic Monitor]

The Social Security Administration (SSA) calculates COLA using the CPI-W. The CPI-W keeps track of the most significant prices for urban consumers. These costs include accommodation, food, transportation, healthcare, recreation, education, and communication. While COLA fluctuations are frequent, the 2025 decline could affect the more than 65 million Americans who receive Social Security benefits.

Famous financial expert Jessica Hall initially revealed this projection on MarketWatch. Hall noted that falling inflation rates caused the 2025 COLA drop. Low inflation rates in recent years may lower the COLA. Because the index tracks urban consumer prices, CPI fluctuations also impact the COLA.

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Despite estimates that 2025’s COLA will be the lowest in five years, the SSA has not released the amount. The SSA typically announces COLAs in October and takes effect in January. Social Security will assist millions of Americans in 2025 despite a lower COLA than in previous years.

Social Security recipients must be informed of the potential impact on their payments, regardless of the expected decline. Recipients should review and adjust budgets and expenses for 2025. Part-time jobs, investments, and savings may also be worth considering. Follow the SSA’s website and other trusted financial sources for Social Security updates.

There may be less of an adjustment to the cost of living in 2025, but Social Security will still help people in need. Recipients can change things as needed to make retirement stable and secure if they are proactive and well-informed.

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