Social Security's 2025 Cost-of-Living Adjustment (COLA) Is on Track to Do Something That Hasn't Happened in 28 Years
What is the average Social Security check amount for retirees?
The average Social Security check amount for retirees is $1,916.63 per month, as of May 2024. This figure varies depending on the type of recipient, with retired workers receiving about 8 percent more than the overall average. The average monthly benefit for all retired workers is expected to increase by $59 to $1,907 in January 2024.
What mechanism accounts for inflation in Social Security?
The mechanism that accounts for inflation in Social Security is the Cost-of-Living Adjustment (COLA). It is calculated based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year to the third quarter of the current year. This adjustment ensures that the purchasing power of Social Security benefits is not eroded by inflation.
How do retirees generally rely on Social Security income?
Retirees generally rely on Social Security income as a significant source of their retirement funding. According to a Gallup poll, between 80% and 90% of respondents have consistently leaned on their Social Security payout as a "major" or "minor" income source. This suggests that a majority of retired workers might not be able to cover their expenses if Social Security didn't exist.