Social Security's scheduled cost of living increase 'won't make a dent' for some retirees

[mahatmakanejeeves]

Associated Press Finance
Social Security's scheduled cost of living increase 'won't make a dent' for some retirees

FATIMA HUSSEIN
Wed, October 9, 2024 at 11:23 AM EDT 3 min read

WASHINGTON (AP) — Sherri Myers, an 82-year-old resident of Pensacola City, Florida, says the Social Security cost-of-living increase she'll receive in January “won't make a dent” in helping her meet her day-to-day expenses.

“Inflation has eaten up my savings," she said. “I don’t have anything to fall back on — the cushion is gone.” So even with the anticipated increase she's looking for work to supplement her retirement income, which consists of a small pension and her Social Security benefits.

About 70.6 million Social Security recipients are expected to receive a smaller cost of living increase for 2025 than in recent years, as inflation has moderated. The Social Security Administration makes the official COLA announcement Thursday, and 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 silver lining is that it's an indication that inflation is moderating, he said.

{snip}

[Walleye]

1. I say, thank the Democrats that we have any Social Security or cost-of-living allowance

[XanaDUer2]

2. Working at 82. Nice

[Traildogbob]

3. $45 dollars

A month, before Reagan’s imposed tax, does not do much, but I am grateful as Hell for what I do get.
GQP with 2025 are closer than they have ever been during its inception to steal it all.
Thank you Democratic fighters that are defending what we do get.

[MichMan]

4. Not nearly as much as inflation went up during the same time frame

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.

Just because inflation is now lower, doesn't mean prices go down, they just don't go up as fast as they have been.

[Voltaire2]

7. They went up by approximately 3.2% over last years approximate 8.7%

Just like inflation did.

[MichMan]

9. CPI index is a theoretical number based on a fictitious basket of urban goods and services

It may or may not reflect what anyone individually consumes, nor any item by item price increases. Seniors have much different spending habits than young people or families.

[MichMan]

5. Some believe the Federal government is using the wrong COLA for SS

The Senior Citizens League’s model predicts the increase will be 2.5 percent. But the government formula doesn’t adequately account for rising health-care costs, which is one of the most significant expenses for retired workers, according to Shannon Benton, the league’s executive director.

Benton said Congress should tie the Social Security COLAs to the consumer price index for the elderly, or R-CPI-E, which measures the spending habits of Americans 62 and older, including health care.

“The way that seniors spend is not taken into consideration, and their spending habits are not weighted as heavily as they should,” Benton said. “While the CPI-E doesn’t always result in a higher COLA, it does so most of the time.”

The experimental COLA based on the R-CPI-E would have met or surpassed the CPI-W COLA in all but six years since 1986 — specifically in 2005, 2008, 2011, 2018, 2021 and 2022, Benton pointed out.

https://www.msn.com/en-us/money/retirement/social-security-payments-aren-t-rising-fast-enough-for-most-seniors/ar-AA1rXhhX?ocid=BingNewsSerp

[Voltaire2]

6. headline and article are editorial rw bullshit. nt.

[Fiendish Thingy]

8. The COLA is small because inflation has significantly declined

I remember the COLA for 2021- it was 9%

This year, inflation is way down.