what is the cola for ss in 2025

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02-12-2024

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I cannot provide a definitive answer to "What is the COLA for SS in 2025?" because the official cost of living adjustment (COLA) for Social Security benefits in 2025 will not be announced until October 2024. The Social Security Administration (SSA) calculates the COLA annually based on the changes in the Consumer Price Index for Wage Earners and Clerical Workers (CPI-W) over the third quarter (July, August, and September) of the preceding year compared to the same period of the previous year.

However, I can explain the process and provide some factors that might influence the 2025 COLA:

How the Social Security COLA is Calculated:

• CPI-W Tracking: The SSA closely monitors the CPI-W throughout the year. This index measures the average change in prices paid by urban wage earners and clerical workers for a basket of consumer goods and services.
• Third Quarter Comparison: The crucial data for determining the COLA is the comparison of the average CPI-W from July, August, and September of the current year (2024 in this case) to the average CPI-W from July, August, and September of the previous year (2023).
• Percentage Increase: The percentage increase (or decrease) in the CPI-W between these periods directly determines the COLA. If the CPI-W increases, beneficiaries receive a COLA; if it decreases, there is no COLA. A decrease is extremely rare.
• October Announcement: The SSA typically announces the official COLA for the following year in October.

Factors Influencing the 2025 COLA:

• Inflation: Inflation rates throughout 2024 will be the primary driver of the 2025 COLA. High inflation typically results in a larger COLA, while lower inflation leads to a smaller increase, or potentially even no increase.
• Economic Conditions: Overall economic performance, including factors like unemployment and wage growth, can indirectly influence inflation and thus the COLA.
• Government Policy: While unlikely to directly affect the calculation, government economic policies might indirectly impact inflation and therefore the COLA.

Where to Find the Official 2025 COLA:

Once the SSA announces the official COLA in October 2024, you will find the information on their official website: https://www.ssa.gov/. Look for press releases and news sections related to Social Security benefits. You can also contact the SSA directly.

In summary: I cannot predict the 2025 Social Security COLA. Check the SSA website in October 2024 for the official announcement. Remember that the COLA is intended to help maintain the purchasing power of Social Security benefits against inflation.