The latest data released by the nonprofit organization “The Senior Citizens League” in the United States indicates that the benefits for American Social Security beneficiaries are expected to increase by 2.63% in 2025, the smallest increase in recent years.
According to the nonpartisan senior advocacy organization’s latest forecast released on Thursday, next year’s benefits for Social Security recipients will see a significant decrease with an increase of only 2.63%. This means that the Cost of Living Adjustment (COLA) for 2025 will be the lowest in recent years, and given the current level of inflation, many elderly people will further feel the pressure of rising living costs.
Inflation measured by the Consumer Price Index (CPI) dropped to 3.0% in June, which is also used to calculate the adjustment in living costs for Social Security beneficiaries.
From 2020 to 2023, the cost of common grocery items directly tracked by the CPI has risen by 24%, with many staple foods, including bread, seeing cost increases of over one-third.
In “The Senior Survey” conducted by The Senior Citizens League in 2024, 60% of retired individuals surveyed indicated that food expenses were the fastest-growing item in their monthly budget, surpassing housing expenses, which is more than double their second-largest expenditure category.
From January 2020 when the pandemic began to December 2023, the Consumer Price Index rose by 20%, while the total increase in the adjustment of living costs was only 19%.
The organization stated in their June report that “this year’s adjustment in living costs will be crucial as many elderly people mentioned that last year, the adjustment did not keep up with their actual expenses.”
The latest estimate by The Senior Citizens League for COLA is higher than their June estimate, where they predicted a 2.57% increase for 2025. Nonetheless, the organization’s latest projection for the adjustment in living costs is still lower than the 3.2% increase in 2024, and far below the 8.7% and 5.9% increases that Social Security beneficiaries received in 2023 and 2022 respectively.
The Senior Citizens League releases its latest forecast for the Cost of Living Adjustment every month. The Social Security Administration will announce the adjustment in living costs for the coming year in October.