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August 23.2025

2 Minutes Read

Social Security COLA Increase: Will It Be Enough for Retirees?

Exterior of Social Security Office, hedges in foreground.

Projected Social Security Increase: A Double-Edged Sword

For older Americans relying on Social Security, every year brings hope with the potential of a cost-of-living adjustment (COLA). Current projections suggest a modest increase of 2.7% in benefits next year. While even small increases can provide some relief, they may not sufficiently cover rising living costs.

The Challenge of Rising Living Costs

Despite the announced COLA, many retirees face a harsh financial reality. Current estimates show that an average retired household spends about $5,000 a month on necessities—far exceeding the projected increase in benefits. The Senior Citizens League (TSCL) highlights that nearly 22 million seniors live solely on their Social Security benefits, a precarious situation in the face of inflationary pressures.

A Closer Look at Inflation's Impact

Retirees are feeling the pinch as inflation continues to rise. Recent surveys indicate that 55% of Social Security recipients believe their benefits barely cover their basic needs. The persistent nature of this inflation is making it increasingly difficult for seniors to afford essentials, let alone comfort.

Healthcare Costs: A Serious Concern

As if the financial strain from inflation wasn’t enough, an anticipated increase in Medicare Part B premiums could further negate any benefits from the COLA. Medicare costs are automatically deducted from Social Security payments, presenting another hurdle for seniors trying to make ends meet.

Advocacy for Comprehensive Reform

Advocates like Shannon Benton, Executive Director of TSCL, stress that Congress must do more to ensure that Social Security adjustments align with the actual economic landscape. With just under ten years until Social Security may struggle to pay 100% of benefits, the pressure for comprehensive reform is mounting.

Your Next Steps: Ensuring Financial Security

The financial landscape for retirees is complex. It's essential for seniors and their families to be proactive about understanding how to apply for benefits and manage their Social Security effectively. Whether you're considering when to apply for Social Security or exploring options to maximize your benefits, resources are available.

For your best options and plan benefits, contact Terrijo Parker today. Friendly, caring, she listens to every client to provide the top choices you need. 231-571-6100.

For Your Best Options & Plan Benefits, Contact Terrijo Parker Today. Friendly, Caring, She Listens To Every Client For To Provide The Top Choices You Need. 231-571-6100.

Retirement and Financial Security

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