"While this seems like a generous COLA on the surface, the reality is that Cost of Living Adjustments have not done their job in making sure that benefits keep pace with inflation, and the value of benefits has been falling over time. Sadly, the decline has been substantial, with the Senior Citizens League reporting that benefits today are worth around $0.80 on the dollar compared to their buying power in 2010."
"The report not only showed high unemployment rates, but it also revealed that hiring is sluggish. This isn't a huge surprise, as there are a number of headwinds making companies reluctant to hire, including continued uncertainty about tariffs, low consumer confidence levels, and persistently high inflation rates. With corporations concerned that consumer spending may be down as prices rise, companies are not eager to hire."
A 2.8% Cost of Living Adjustment will increase Social Security benefits in January. Cost of Living Adjustments have not kept benefits aligned with inflation, reducing purchasing power substantially since 2010 to roughly $0.80 on the dollar. Future COLAs depend on economic conditions. Recent data provide early signals for upcoming adjustments. The December jobs report showed unemployment rising to 4.6% and hiring remaining sluggish. Employers face headwinds such as tariff uncertainty, low consumer confidence, and persistent inflation, which dampen hiring and could influence future COLA calculations and retiree finances.
Read at 24/7 Wall St.
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