Trending searches: social security increase for 2025
hey there thanks for stopping by today so I want to talk about something that's really important and it's probably on your mind Social Security and whether it's going to get an increase this year the Social Security Administration hasn't released the official numbers just yet but we've got some early estimates and there's a lot of discussion around what the cost of living adjustment or Cola might look like for 2025 it's looking like it could be around 2.5% and that's definitely a bit lower than last year's 3.2% increase but let's take a closer look at what this means for you now I know a lot of you might be thinking is 2.5% really enough to keep up with the rising cost of living it's a fair question especially when we've all been dealing with higher prices at the grocery store with Healthcare and pretty much everything else but here's something that might surprise you a smaller Cola can actually be a good thing in the long run especially as inflation begins to slow down it means that prices are rising as quickly and that can make it easier to plan ahead and budget so even though the increase might seem modest it could help protect the value of your savings and give you a bit more stability moving forward and speaking of budgeting let's talk about what a 2.5% increase really looks like on average this will raise monthly Social Security benefits by about $48 for most retirees that brings the total monthly payment to around $1,966 it's not a huge jump but every bit helps right plus this adjustment is designed to help you keep Pace with inflation even though it slowed down a bit compared to the past few years when prices were skyrocketing I know a lot of you have felt the pinch especially if you've been relying on your Social Security benefits to cover most if not all of your expenses but here's another thing to keep in mind while the cola is meant to help offset inflation it doesn't necessarily mean that prices are coming down we've all seen how certain costs like housing and Healthcare tend to stick around in higher levels even after inflation cools off so while the Cola can help it's important to remember that it's not a fix for everything for those of you managing on a tight budget it's still a good idea to keep an eye on your spending and maybe even look for ways to stretch those dollars a little further like using coupons or taking advantage of senior discounts now I want to touch on something a lot of people might not realize when your Social Security benefits go up it's not all going straight into your pocket unfortunately Medicare Part B premiums which cover things like doctor visits and Outpatient Care are also expected to rise next year the standard premium is projected to go up to around $185 a month which means that some of that Cola increase about 20% of it will likely get eaten up by those higher premiums so if you've been noticing that your benefits don't seem to stretch as far as you'd like that's one reason why and this brings me to another thing worth thinking about for those of you who depend on social security for most or all of your income you're not alone about 2/3 of seniors are in the same boat but it's important to recognize that social security wasn't originally designed to be your only source of income in retirement if you've got savings Investments or a pension those are all pieces of the puzzle the challenge of course is that not all pensions or savings accounts keep up with inflation as well as Social Security does stocks for example have done pretty well in the long run but if you've got more of your money in bonds or cash you might be feeling the impact of inflation a bit more let's not forget though that having a smaller Cola increase also means inflation is under control and that's a relief for many of us it helps preserve the value of your money so you won't have to dig as deeply into your savings just to cover everyday expenses this could be especially helpful if you're planning for the long term whether it's maintaining your current lifestyle traveling or even just covering health care costs as you get older speaking of healthcare I know many of you are concerned about the rising costs of Medical Care care especially with medicare premiums going up that's something to keep in mind as you're thinking about your retirement budget if possible you might want to factor in some cushion for these kinds of expenses it can be frustrating when it feels like your Cola increase gets chipped Away by things like Medicare but the key is staying proactive and planning ahead as much as you can and hey if you're still working part-time or doing some freelance work in retirement you're in a unique position not only are you able to offset some of these Rising costs but you're also keeping yourself engaged and active which is great for your overall well-being some retirees have even gone back to work for a little while to supplement their social security it's definitely an option to consider especially if you're looking for ways to give yourself more financial breathing room without having to dip too much into your savings so to wrap things up while the projected 2.5% Cola increase might seem a bit smaller than what we've seen in recent years it's a sign that inflation is cooling down that's good news for everyone it means your money will hold more value over time and you'll have a bit more stability as you plan for the future but it's also a reminder to stay on top of your budget and keep an eye on how things like medicare premiums could impact your overall income if you've got any questions or thoughts on how this might affect you feel free to drop them in the comments I love hearing your stories and answering your questions it's what makes this community so special let's all help each other navigate these changes and keep looking for ways to make the most of our retirement thanks for watching and I'll see you next time