Article

2024-10-15 Economy

Furious seniors react to Social Security rise for 2025

[Daily Mail, where America gets its news] Furious seniors have expressed their frustration at the Social Security uplift for next year, with many questioning how they will afford their living expenses.

The Social Security Administration last week announced nearly 68 million Social Security recipients will see a 2.5 percent increase to their benefits in 2025.

This uplift, known as the cost-of-living adjustment, or COLA, is the lowest since 2021 - an average increase of $49 a month.

Older Americans and senior groups have since expressed their disappointment at the raise, which they say does not reflect their changing expenses after years of high inflation.

'My social security disability check currently is only about $60 more than my rent. January when I sign my new lease I'll be running a negative,' one user wrote on a Reddit thread about the increase. 'I'm hanging on by a thread.'

Increased payments to nearly 7.5 million people receiving Supplemental Security Income (SSI) funds will also start on December 31, 2024.

The COLA uplift is based on a specific inflation measure called the Consumer Price Index for All Urban Wage Earners and Clerical Workers (CPI-W).

This tracks the price changes that urban wage earners and clerical workers pay for a basket of common consumer goods and services.

The uplift will increase the average retired workers' benefit by $49 in 2025, hiking it to around $1,976 a month.

It is the lowest yearly increase since 2021, when beneficiaries received a 1.3 percent increase to benefits.

In 2024, there was a 3.2 percent hike, and in 2023 there was an 8.7 percent boost - the highest in four decades in response to record high inflation.

In 2022, benefits increased by 5.9 percent.

Now that the pace of inflation is slowing toward the Federal Reserve's 2 percent goal, the COLA adjustment has come down closer toward the historical norm.

The benefit increase has averaged around 2.6 percent over the last 20 years, according to nonpartisan group The Senior Citizens League (TSCL).

But the group said that the measure by which the yearly increase is calculated fails to measure inflation as seniors experience it.

TSCL executive director Shannon Benton said this year represents 'another lost opportunity to grant seniors the financial relief they deserve' by changing the COLA calculation which would 'better reflect seniors' changing expenses.'

She suggested instituting a minimum COLA of 3 percent.

'Our research shows that 67 percent of seniors depend on Social Security for more than half their income and that 62 percent worry their retirement income won't even cover essentials like groceries and medical bills,' Benton added.

And many seniors on social media are expressing exactly these concerns about being able to get by.

'I am grateful for any increase but it's not enough, rent goes up more than that each year, forget the increase in transportation and food and literally everything else, it won't really make much of a difference,' one user wrote on Reddit.

Another said: 'There are going to be many elders that will be going without things. Many live SS check to SS check as it is. With inflation this high it's going to be hard.'

'The COLA needs replacing with a cost increase that reflects the actual spending of seniors,' another person said.

Although inflation has fallen from its 2022 highs, sustained high prices have chipped away at household budgets - which is especially tough for those on a fixed income in retirement.

Food prices have risen by 20 percent in the last five years, according to Labor Department data.

Posted by Skidmark 2024-10-15 09:34|| || Front Page|| [11139 views ] Top

#1 Older Americans and senior groups have since expressed their disappointment at the raise, which they say does not reflect their changing expenses after years of high inflation.

Idiots. Won't make any difference soon. At the rate of spending and the impossible deficit, your money is going to be worthless. Inflation is created by government. But, hey, you voted for it for decades. 100% increase of zero value is still zero value.

Posted by Procopius2k 2024-10-15 15:27|| 2024-10-15 15:27|| Front Page Top

#2 The 2.5% will also be the adjustment for people retired from the Federal civil service.

FWIW, the monthly social security amount is capped at $4873 so those at that amount (probably no more than a few hundred like that) would not get an increase.

Posted by Lord Garth 2024-10-15 17:10|| 2024-10-15 17:10|| Front Page Top

#3 If you have a Gubbamint Pension, the Windfall Provision suitably reduces any SSI payouts you get. I will basically get beer money, as deserved

Posted by Frank G 2024-10-15 18:28|| 2024-10-15 18:28|| Front Page Top

#4 ICYMI, that's before taxes, chumps!

Posted by `AlmostAmonymous5839 2024-10-15 18:34|| 2024-10-15 18:34|| Front Page Top

#5 Helping my soon-to-be 87 yr old (Democrat) Mom reconcile and pay bills yesterday AM.
She said: "You know they'll take away Social Security soon".
I said: "Who Mom? Donald Trump? Who pledges absolutely not?"
She said: "on TV"

We're fucked

Posted by Frank G 2024-10-15 19:19|| 2024-10-15 19:19|| Front Page Top

#6 We promised both my mother and Mr, Wife's mother that we would support them, should it become necessary.

Because it won’t be President Trump taking away Social Security, but the simple fact that money coming in from workers will be less than money promised to retirees. We’ve been warned about this since the 1970s, and Congress has over the years taken measures to push that back — raising the retirement age, increasing percentages and maximum amount taken out of paychecks, not raising the threshold for paying taxes on payments to keep up with inflation/COLA…

Posted by trailing wife 2024-10-15 19:43|| 2024-10-15 19:43|| Front Page Top

#7 Beer money ... nowhere close to that for me

Posted by Glenmore 2024-10-15 20:55|| 2024-10-15 20:55|| Front Page Top

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