According to a report published by the Senior Citizens League, the Cost of Living Adjustment (COLA) for 2025 is expected to be 2.63%, although the Social Security Administration (SSA) is awaiting the latest data from the Department of Labor The non-profit organization assures that the increase will be one of the lowest since 2021.
To calculate COLA, SSA collects Data from the Consumer Price Index for urban wage earners and administrative workers (CPI-W) for the third quarter of the year: July, August, September; compares them with the third quarter of the previous year; and the percentage difference is the increase that is established as COLA for the following year.
This year the increase was 3.2%, but statements from the Senior Citizens League have increased uncertainty about the adjustment for next year. Even taking into account that inflation (an important factor for the analysis) has also fallen very close to this year’s objectives.
Regardless of how soon the COLA adjustment remains, here we list 5 ways to take care of your retirement check for 2025:
Management with budget
More than 7 million SSA retirees and policyholders rely solely on Social Security. Therefore, knowing the payment schedules, The amounts that correspond to them in their monthly checks will allow you to better manage your finances.
If you depend on this benefit every month without any other extra income, it is best to make a budget between food, housing payments, medical care, among others. Many are unaware of SSA social programs, some of which provide financial aid. For low-income seniors, this can be a great option.
Move to another state
There are states that are much more expensive than others and even where Social Security benefits must be declared, The best thing is to evaluate your financial situation very carefully and determine if where you live you can afford your lifestyle, If not, it is best to move to a more affordable entity where the costs of rent, medical services, and so on are cheaper.
Review insurance policies
Due to high inflation, many insurance policies have increased their costs, If the retirement benefit is your only income, it is best to carefully review the cost of the insurance policies.If you exceed your budget, it is best to adjust a rate to your needs.
Home adjustments
When many reach retirement age, they realize that they are living in larger houses than they really need. If it is not necessary, it seems logical to want to move or readjust some spaces to avoid spending as little as possible on basic home services. This will allow you to save more every month.
Smart shopping
If you must adjust your budgetIt is best to make a list of priorities to avoid impulsive purchases. that will end up putting you in even more debt or spending your savings unnecessarily.
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