On the 10th, the Social Security Administration (SSA) announced that the Cost of Living Adjustment (COLA) for the upcoming year has been set at a 2.5% increase for approximately 72.5 million Social Security beneficiaries nationwide.

While this represents the smallest increase since February 2021, it is slightly higher than the market expectation of 2.3%.

Following the surge in inflation due to the COVID-19 pandemic, COLA adjustments were 5.9% in 2022, 8.7% in 2023, and 3.2% in 2024.

The COLA increase in 2021 was 1.3%, while the highest increase over the past 50 years occurred in 1980, at 14.3%.

As a result, starting in January, Social Security beneficiaries are expected to see their monthly payments rise by approximately $50, bringing the average benefit to $1,976.

However, the American Association of Retired Persons (AARP) expressed concerns, stating that the increase may not be sufficient for retirees to cover their living expenses. According to the AARP, about 40% of the elderly rely on Social Security as their primary source of income.



<Hwang, Eui-kyung>