Social Security COLA to drop in 2025, with seniors paying more tax: Read more
The cost of living adjustment (COLA) of Social Security in the year 2025 is forecasted at 1.75% as per an analysis done by The Senior Citizens League (TSCL), a non-profit, neutral advocacy group for seniors.
The raise will be less than the 3.2% modification this year and that of 8.7% in 2023 which stood at being the highest increase within a span of 40 years. Besides it would be falling short of the forecast by the Congressional Budget Office at 2.5%.
A differing calculation than TSCL is used by CBO, however with clarity inflation rates are predicted to be falling from the levels in 2023 and the COLA for the year 2025 will be less than that as well, as per the Social Security and Medicare policy analyst at TSCL, Mary Johnson carrying out these calculations per month. She further stated that her estimates are changing every month based on the most latest CPI data and that they are still having as many as eight months of data coming in and many things could be changing.
COLA: How is it calculated?
COLA is based every year by Social Security Administration on average annual increases in the CPI for the wage earners who are urban and the clerical workers (CPI-W) from July to September.
The urban wage earners' index hugely reflects the wide index that is released by the Labor Department every month, though it differs slightly. In the past month, the all -inclusive CPI rose by 3.1% and the urban wage earners' index increased by 2.9%.
Lower COLA: How would
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