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Social Security’s Reduced COLA outlook–Thoughts on the “Pro” Side
Most people know that the annual cost-of-living adjustment (COLA) applied to benefits in January has been higher than the program’s historical increase for the past three years, averaging just under 6%. Most people also know that projections for the 2025 adjustment are less than half that three-year average, coming in at what looks like about 2.5% at this point. That’s a substantial drop, of course, but as The Motley Fool’s Maurie Backman points out in a post today on the Yahoo.com Finance page, this calculation has positive aspects. Looking at inflation through the lens of inflation, the lower COLA reflects a decrease in the price increases plaguing the economy over the past few years, although, of course, prices remain high. Ms. Backman addresses this point with comments regarding the importance of having additional income to cope with the overall cost of navigating today’s economy. Read her full post here…