Social Security is a government program that provides financial assistance to Americans throughout their lives. It provides income for retirement, disability, and other circumstances. Social security is a retirement income for most American workers. More importantly, it is a Supplemental Security Income (SSI) for some people who are 65 and older with limited income and resources.
Sherri Myers, an 82-year-old resident of Pensacola City, Florida, expresses her dissatisfaction with the Social Security cost-of-living increase she’ll receive in January. She says it “won’t make a dent” in helping her meet her day-to-day expenditures.
“Inflation has eaten up my savings,” she said. “I don’t have anything to fall back on — the cushion is gone.” Even though there is an anticipated increase, but still won’t be significantly impactful to keep up with the day-to-day cost of living in the heightened inflation. So, many like Sherri Myers are looking for work to supplement their retirement income, which consists of a small pension and Social Security benefits.
According to official reports, inflation has moderated. About 70.6 million Social Security recipients are expected to receive a smaller cost of living increase for 2025 than in recent years. The Social Security Administration made the official COLA announcement Thursday. However, analysts predicted in advance it would be 2.5% for 2025. Recipients received a 3.2% increase in their benefits in 2024, after a historically large 8.7% benefit increase in 2023, brought on by record 40-year-high inflation.
“I think a lot of seniors are going to say that this is not really enough to keep up with prices,” said AARP Senior Vice President of Government Affairs Bill Sweeney.
The positive aspect is that it is an indication that inflation is moderating for the first time since Covid-19, he said.
The announcement comes at a time when the national social insurance plan is anticipated to encounter a significant financial deficit in the forthcoming years.
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