(StraightNews.org) – Social security benefits will receive a minor cost-of-living adjustment (COLA) next year that will not keep up with inflation, campaigners claim. The COLA of 2025 will be the smallest in four years while expenses rise and most retirees struggle financially. Data shows that more than 50% believe they don’t have enough money to get by, and 90% are worried about the devaluation of their savings.
The Senior Citizens League claims that COLAs have failed to keep up with inflation and that last year they received a 3.2% boost, while two-thirds of retirees said their cost of living had overtaken that.
Experts say COLA percentages are calculated using data about standard costs and spending habits and, therefore, do not consider extra spending on housing or medical care undertaken by older individuals.
Analysts warn that the COLA percentage will be even lower next year, at just 2.6%, with some cautioning that it could be even lower than that.
President Biden has pledged to do more to tackle cost-of-living concerns as research shows most Americans are worried about their financial future. The President has touted his Inflation Reduction Act but admits it has not yet decreased prices. Nevertheless, the White House insists it will lower inflation by decreasing energy rates by up to 9% and gas costs by 13% before 2030.
Donald Trump promises to “drill baby drill” if re-elected. The former President will also increase tariffs on Chinese goods to shield domestic markets, although some economists warn this will drive consumer prices up.
The research firm Oxford Economics claims that regardless of who wins in November, inflation will continue to rise. Oxford Economics deputy chief US economist Bernard Yaros Jr. said if Trump wins, inflation will increase to %3.8, but will rise just 0.1% from the current 3.3% under President Biden.
The organization stated that Trump’s deportation policy will dramatically reduce the workforce and drive up costs. However, Federal Reserve chair Jerome Powell predicted that inflation would come down and meet the Fed’s 2% target.
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