With the 2025 COLA announcement, the average Social Security check for individual retirees will increase from $1,927 per month to $1,976
Prices accelerated in September, though the overall inflation rate continued to drift lower. The Consumer Price Index was up 2.4 percent from a year earlier, the smallest 12-month increase since February 2021. Some of the details of the report were more important than usual.
There have long been complaints that the CPI report lags more timely data. According to Apartment List, rents dropped by a half of percentage point in September and are slightly cheaper than they were a year ago. The median rent nationally now stands at $1,405 and is expected to continue to dip modestly through the remainder of the year. Despite this progress, the national median rent is still more than $200 per month higher than it was just a few years ago.
The COLA for 2025 will be 2.5%, down from this year’s 3.2% bump and a lot lower than the 2023 COLA of 8.7%. But the reason is a good one: the inflation rate has been decreasing. As a reminder, when prices dropped on an annual basis, like in 2010, 2011 and 2016, Social Security COLA was a big fat ZERO. As a frame of reference, even with the post-COVID inflation spike, over the last decade the COLA increase has averaged about 2.6%.
The annual SS COLA is yet another reason to try to delay claiming your Social Security benefit to at least your Full Retirement Age or to age 70, when you can receive credits for delaying filing that can boost retirement savings significantly. The higher Social Security benefit, the more money that you can collect every year when the COLA is announced.Many of you have asked the best way to help the victims of Hurricanes Helen and Milton.
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