"Rising 2025 Social Security COLA Spells Trouble for Retirees"

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Source: The Motley Fool
"Rising 2025 Social Security COLA Spells Trouble for Retirees"
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TL;DR Summary

The annual Social Security cost-of-living adjustment (COLA) for 2025 could be larger than the 2024 increase, potentially impacting retirees negatively due to the time value of money and rising inflation. The current inflation metrics suggest a higher COLA, but this may not fully address the increasing healthcare costs incurred by retirees, potentially reducing their real buying power. However, estimates for the 2025 COLA are subject to change, with the latest prediction at 2.6%, still lower than the 3.2% increase in 2024.

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