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Social Security's 2.5% COLA Increase for 2025 Faces Criticism

The adjustment, the smallest since 2021, is deemed insufficient by senior advocates amid rising living costs.

  • The 2025 cost-of-living adjustment (COLA) for Social Security is set at 2.5%, resulting in an average monthly increase of $50 for beneficiaries.
  • Senior advocacy groups argue that the COLA does not adequately address the rising costs of essentials like healthcare and housing.
  • Critics call for reform, suggesting a shift from the CPI-W to the CPI-E index to better reflect seniors' spending patterns.
  • Surveys indicate that a majority of seniors depend heavily on Social Security and fear their income won't cover basic needs.
  • Political leaders and experts stress the need for legislative action to strengthen Social Security and ensure sustainability.
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