2.6% Expected as Inflation Remains Mild

  • Social Security’s COLA could shrink to 2.6% in 2025
  • Mary Johnson’s forecast compares to a previous prediction of 2.7% increase
  • The average COLA over the last 20 years has been 2.6%
  • COLAs are meant to keep up with inflation
  • Housing remains a challenge for the economy

The Social Security cost-of-living adjustment (COLA) for 2025 may decrease from this year’s 3.2% increase, according to Mary Johnson, an independent Social Security and Medicare analyst and former Senior Citizens League member. The new forecast is a change from her July prediction of a 2.7% rise. The official announcement for the 2025 COLA will be released in October. Over the past 20 years, the average COLA has been around 2.6%, as stated by the Senior Citizens League. COLAs are not raises but rather adjustments to maintain pace with inflation. The recent Consumer Price Index report revealed that while inflation is mild, housing remains a challenge for the economy.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the potential decrease in Social Security cost-of-living adjustment for 2025 based on expert analysis and historical data. It also explains how COLA works and its relation to inflation. However, it could be improved by providing more context on the current economic situation and the factors affecting the change.
Noise Level: 3
Noise Justification: The article provides relevant information about the potential adjustment of Social Security cost-of-living adjustment (COLA) for 2025 and includes insights from an expert in the field. It also explains how COLA works and its relation to inflation. However, it could benefit from more context on the broader economic situation and potential impacts on beneficiaries.
Key People: Mary Johnson (independent Social Security and Medicare analyst)

Financial Relevance: Yes
Financial Markets Impacted: Social Security and related financial markets such as bonds and equities may be impacted by changes in COLA
Financial Rating Justification: The article discusses the potential change in Social Security’s cost-of-living adjustment (COLA) for 2025, which can affect the finances of retirees and their investment decisions. This has implications on financial markets as it may impact bond and equity investments related to retirement savings.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
Move Size: No market move size mentioned.
Sector: All
Direction: Down
Magnitude: Small
Affected Instruments: Bonds

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