CNS News– The 1.75% COLA for Social Security is a letdown for 2025. The Social Security Administration has revealed a cost-of-living adjustment (COLA) of 1.75 percent, which is much less than what they have done in the past. Inflationary trends are a big reason for this disappointing rise. These trends have made Social Security benefits much less valuable.
The Burden of Inflation
The COLA is a very important part of keeping seniors’ standard of living high. But because inflation is rising faster than the COLA, many people are finding it hard to keep up with the costs. The problem is made even worse by the fact that fixed income limits have not been updated to account for inflation. As a result, more and more Social Security recipients are having to pay taxes on their payments.
The Future of Social Security: Problems and Hopes
Social Security has problems that go beyond the COLA. The trust funds for the scheme are expected to run out by 2035, which means that benefits could be cut. This is a very important problem for retirees because Social Security is a big part of their income. A Gallup study found that 57% of people who are not yet retired plan to depend on Social Security as their main source of income in retirement.
“Social Security 2025 COLA seen falling, leaving seniors struggling and paying more tax.” (via @USATODAYmoney) https://t.co/kKbW28AgD0
— Dan Nowicki (@dannowicki) February 13, 2024
The seriousness of the problem is shown by the $10 trillion in unfulfilled promises that Social Security has made in the last ten years. What the program says it will pay for and what it can pay for has grown faster than the economy as a whole. Even though these facts are very clear, Congress has still not done anything to solve the problem.
So, it’s up to people to keep an eye on government programs and deal with the results of their choices. No longer can people just believe what leaders say. Every person needs to be aware of how their vote will affect the future of Social Security. The value of this duty becomes even clearer when the government is shut down.
Social Security, Supplemental Security Income, and Social Security Disability Insurance payouts will still be made even though the government is shut down. But fixing problems with payments might take longer than planned. During a shutdown, other government programs like Medicaid, Medicare, WIC, and SNAP may also not work as well.
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Finally, the 1.75% COLA for 2025 is a stark warning of how hard things are for Social Security. It’s a wake-up call for voters to look closely at government services and tell Congress to do something. There is a lot at stake for the future of Social Security and the health and safety of millions of seniors.