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22.09.2024 13:30:00

Social Security's 2025 Cost-of-Living Adjustment (COLA) Is Coming. Will It Be Enough for Retirees?

Social Security is one of the most critical -- and expensive -- functions of the federal government. The Social Security Administration (SSA) doles out about $1.5 trillion a year to 68 million Americans, 51 million of whom are retired workers. Nearly 40% of these retirees rely on SSA payments for at least half of their income, and about 13% of recipients rely almost exclusively on them. The financial health of millions of Americans rests very squarely on the shoulders of Social Security.Whether Social Security benefits play a major role in your retirement or not, you might be wondering how inflation will impact your benefits. As costs rise, will you be forced to tighten the proverbial belt? Luckily, every year the SSA adjusts payments to reflect changing costs with the intention of keeping retirees' standard of living constant. This is known as the annual cost-of-living adjustment (COLA), and it's a big deal for many retirees.Continue readingWeiter zum vollständigen Artikel bei MotleyFool

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