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hey thanks for making it to Veterans infot tap I'm glad you made it the numbers are not lining up the cola adjustment predictions or projections or forecasts for your pay increase for veterans benefits uh be it disability compensation dependency indemnity compensation or what have you and your Social Security benefits in my opinion are still not keeping up with the actual inflation that we've realized seems to me like we're always behind the ball with this now I do have some information I'm going to share with you I do have a uh another article that I found this one is actually on aol.com look I get it AOL go figure they're still there all right so let's jump into this please hit the thumbs up subscribe share with a friend all that good stuff I truly appreciate it uh every minute watched helps this video expand its reach and get the information uh into the hands of our brothers and sisters if you want to support the channel in other ways consider being a member you can do that by going to the homepage you'll see highlighted members and a join button thank you so much to all you members I truly appreciate you all right so let's jump into this aol.com Finance all right so projected Cola for 20125 September update that's where we're at today September 11th 2024 the numbers are in for July and August we have one month remaining which is September the numbers will be released for the September data October 10th and subsequently we will be told what our cost of living adjustment or effective pay raise will be by the Social Security Administration so every year the Social Security Administration gets uh gets the numbers together and they implement the cola foral security recipients and every year uh Congress puts in a piece of legislation stating that the VA can and must mirror that number for uh many of their benefits now the couple that I found that are excluded from that Cola that have their own Cola by the way on the VA side is chapter 35 and vr& subsidence allowance those two programs the VA comes up with their own Cola somehow uh last year just for example the cola that VA applied to chapter 35 and to vr& veterans Readiness and employment subsidence allowance was 6.2% so go figure all right let's jump back into this more than 65 million people receive Social Security benefits according to an August 2024 data from the Social Security Administration now here's the thing anytime you hear Social Security with regard to Cola you can just add in uh VA benefits such as disability compensation pension um disability uh dependency IND dimity compensation and so forth so uh many of them rely on Social Security and veterans benefits for their financial well-being for others it may be their only form of income or retirement the Social Security Administration applies a cost of living adjustment more commonly called Cola cost of living adjustment Cola that's that pay increase two benefits each year to help you keep up with Rising inflation and just a side note there's never a negative Cola it's either zero or a positive uh meaning an increase the inflation in with here we go with inflation improving the nonpartisan Senior Citizens League projects that the social security Cola for 2025 uh will be at 2.5% as of September because we have July and August numbers in we're still waiting for September's numbers once those come in then we'll go so the senior citizens League which is basically a four four Runner and all this stuff um has now revised and lowered their projection so before they were at 2.6 last month now they're at 2.5 so moving on despite adjustments the senior citizens League estimates or estimate is trending downward from recent years sparking worries of financial insecurity for seniors however there is still time for things to take a turn as the official Cola increases won't be announced until next month in October learn more about how the Social Security Cola is calculated and uh its impacts on seniors there's some additional information there and let's jump into that so the cost of living adjustment aims to level the playing field and boost benefits in a step in and boost benefits in step with rises in inflation the adjustments aren't arbitrary the Social Security Cola calculation uses data from the Consumer Price index for urban wage earners and clerical workers that's the CPI W released by the Bureau of Labor Statistics at a specific point in time to inform the increase So currently we use the CPI W which is based on the spending habits essentially of workers which is weird because it's Social Security which has a lot of retirees and people over a certain age so it's weird that they use that anyway there has been talks and there has been legislation pushed for the utilization of CPI that is the Consumer Price Index for elderly so that if that was used we would have realized about a quarter per on average increase year-over-year the bottom line is is that there should be a better way to calculate Cola and keep keep you B more in line you know I always do this little arm graph thing which is kind of working inflation's doing this cost of living does this great they both are trending upward the problem is the further along you go the further apart they get and that has been the trajectory year over year over year so if you had a year you know whatever a 30-year graph and that's inflation and this is Cola you know sure you started off at the same point but after a while that got that Gap got really big so we do need a better way moving on the Social Security Administration Cola is not a mystery it's based on the CPI W says uh Brooke Peterson um I don't know bunch of letters CA C CF oh okay cfp I'm guessing chief financial planner and chfc I'm not sure and wealth consultant at investment advisory firm Conrad seagull the cola is based on the percentage increase in the CPI W from the third quarter of the previous year to the third quarter of the current year I love that they're saying it that way because other places you read it say the fiscal year so again just a highlight it's always the third quarter of the calendar year or the last quarter of the fiscal year the months are the same July August and September so moving on set by law this calculation has been automatic since 1975 thanks to a cola provision in 1972 Social Security amendments the uh since 75 there have been three years where the calculation resulted in a zero Cola because there wasn't an increase in the CPI W 2010 11 and 16 what is the 2025 Cola prediction the current Social Security Cola uh projection for 2025 is 2 and a half% according to the senior citizens League the senior citizens League updated its 2025 Cola prediction based on August CPI data uh which came in at 22% the CP uh the senior citizens League projects uh projection decreased from a 2.57 which rounds to 2.6 when July CPI W came in at 2.9 according to the senior citizens league but remember this is only an estimate of potential Cola increases for 2025 the official Cola increase uses the third quarter data from July to September so it's too early to tell in other words we're still waiting for you know 2third of September's death to be finalized so it can get crunched and sent out uh October 10th nearly everyone was wrong about the path of inflation this year says Peterson moving on Cola over the last decade 2025 2024 I don't know maybe they meant 2015 to 2024 Cola has widely uh varied widely over the past 10 years the lowest Cola in that time frame in 2016 at 0% and the highest was 2023 with that Cola at 8.7% the senior or the Social Security 2024 Cola increases increase was lower uh was a lower 3.2% for 2024 all right so just for Giggles the they do have the numbers here starting from uh 2015 and I'm just going to give the numbers so uh 1.7 0.3 2 2.8 1.6 1.3 5.9 8.7 3.2 and now we're projected for a 2.5 according to uh an email September 11th the Social Security League press release resulting in another drop that percentage is likely to change but the concern is that the cola increase is not enough I agree this uh a survey by a survey by the National Institute on retirement security Echoes that sentiment with 87% of respondents concerned about Rising costs and 66% worried about increasing health care costs in retirement what are or what the 2025 Cola increase means for your retirement if you're currently receiving Social Security benefits the projected 2025 Cola for Social Security can give you an idea of what kind of increase you might see but you'll have to hold tight for those numbers the cola applied to beneficiaries Che checks starting in January of 2025 will be calculated and announced on October 2024 says Martha sheden president and co-founder of the National Association of res registered Social Security analysts the increase can help battle inflation and try to retain purchasing power but other costs offset the benefit of your Social Security benefits Medicare Part B premiums have the largest impact on the net amount for of retirees social security income since those premiums are deducted from Social Security checks says sh uh sheeton the main issue is that the cola increase doesn't account for all of the added cost everyone is facing especially seniors paying for Medicare on limited incomes as we have all experienced the cost of goods and services are significantly higher says Peterson he explains that the increases for Medicare Part B and Medicare Part D have significantly exceeded the Social Security Cola ER in purchasing power the Social Security 2024 Cola increase was a disappointment for many retirees as of now the Social Security Cola projection for 2025 is a drop compared to the 2024 Cola which could feel like a bigger blow but we'll have to wait until next next month to find out all right love to hear your thoughts thanks so much for watching I appreciate you have a great one to remember if we don't take care of each other something went wrong