The Social Security Cost-of-Living Adjustment (COLA) Calculation Hurts Seniors. 1 Change Could Bring Thousands More in Benefits.
We're still a few months away from the 2025 Social Security cost-of-living adjustment (COLA) announcement, but the latest projections put it at a disappointing 2.6%. That would add about $50 to the $1,931 average Social Security benefit as of March 2024.
It might not be enough, though. Many seniors reported their benefits rising by more than $185 in 2023, according to The Senior Citizens League (TSCL), though the COLA only increased average benefits by $59 per month for 2024.
A big reason for this mismatch has to do with how the Social Security Administration calculates COLAs in the first place. For years, people have been requesting a change that would net seniors thousands more over their lifetime. President Biden has even included it in his four-point plan for Social Security, but it faces a long road to approval.
Source Fool.com
