Millions of Social Security recipients will see a 2.5% increase in their monthly checks starting in January, the Social Security Administration announced. This increase, which amounts to an average of over $50 more for retirees, comes as the program serves a record number of retirees while facing financial challenges. The increase is a relief for many recipients, but some, like 82-year-old retiree Sherri Myers, still struggle to make ends meet with rising costs.
The increase for 2025 is smaller compared to previous years as inflation has moderated. Social Security Commissioner Martin O’Malley acknowledged that many seniors are facing financial difficulties, especially with the rising costs of prescription drugs. However, he noted that policies proposed by the Biden-Harris administration could help lower prescription drug costs for many recipients.
The news of the increase comes as the Social Security program faces a significant financial shortfall in the coming years. AARP CEO Jo Ann Jenkins called on Congress to take bipartisan action to strengthen Social Security and ensure that older Americans can continue to rely on the program. Both presidential candidates, Democrat Kamala Harris and Republican Donald Trump, have presented plans to strengthen Social Security, with Harris proposing to make billionaires and big corporations pay their fair share in taxes and Trump focusing on economic growth to protect the program.
There is also discussion about changing the way the COLA is calculated, with some lawmakers advocating for a shift to an index that better reflects the spending patterns of older Americans. As the Social Security Administration begins notifying recipients about their new benefit amount, the future of the program remains a hot topic of debate among policymakers and advocates.
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