Social Security COLA for 2025

[liftlock]

The SS benefit increase for 2025 is currently estimated at 3%.

This article mentions more recipients being taxed on their SS benefits.  Many SS recipients do not realize that the income thresholds for taxing SS benefits were set in 1984 and have not been indexed for inflation since then.  It's a stealth tax that politicians seldom mention.  

www.msn.com/en-us/money/personalfinance/new-2025-social-security-cola-estimate-released/ar-BB1ltahG?ocid=nl_article_link

[steelpony10]

liftlock ,

       I helped manage my parents assets from retirement on. I used 2.1%, their average including a few 0’s and 5’s over 35 years, for my planning. I think I live in a much more volatile time presently, but not quite 70’s style inflation which was my worse case scenario used in my plan..

        Since my guess for SS COLA was so low our overshoot in cash flow planning contributed even more to our excess cash for actual needs. This dampens the affects of inflation. Wait until the day when inflation is controlled and raises go back to 2%. No complaints here. We’ll see in October.

[yogibearbull]

The latest CPI also fixed the variable I-Bond rate to 2.96%.
Fixed rate will be known on 4/30/24 or 5/1/24.

[johntaylor]

Congress should mandate the CPI-E for SS COLAs rather than the CPI-W

[yogibearbull]

johntaylor, that can be as part of a comprehensive Social Security reform. But now, if CPI-W was just switched to CPI-E, that would move up the benefit reduction date by several years.

[johntaylor]

Yep, lotta changes need to be made, but the COLA ought to more accurately reflect retiree costs