Social Security beneficiaries depend on annual cost-of-living adjustments (COLAs) to keep up with inflation, but these increases are not guaranteed. Although Social Security now has an automatic COLA system, the raises depend on inflationary trends. In 2025, beneficiaries saw a modest 2.5% increase, which illustrates the larger issue: COLAs frequently fail to adequately address the rising costs of living for seniors. To ensure financial security, retirees should consider additional income sources beyond Social Security benefits.
Social Security recipients depend on COLAs to manage their expenses, but raises aren't guaranteed, highlighting the need for additional income sources.
COLAs, despite being tied to inflation, have a history of not sufficiently keeping pace with the real costs faced by seniors.
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