COLA Shortfall – In 2025, Social Security retirees may face a cost-of-living adjustment (COLA) shortfall, meaning their benefits won’t fully keep up with rising living costs.
Inflation Impact – Despite a modest COLA increase, inflation continues to outpace Social Security adjustments, reducing retirees’ purchasing power.
Rising Costs – Increased costs for essentials like healthcare, food, and housing are leaving retirees struggling to maintain their standard of living on fixed incomes.
Lower-than-Expected Increase – The 2025 COLA adjustment may be smaller than anticipated, with some retirees seeing little to no improvement in their monthly benefits.
Healthcare Strain – Rising medical expenses, including premiums and out-of-pocket costs, are particularly hard on Social Security recipients, further shrinking their budgets.
Fewer Savings – Many retirees depend entirely on Social Security, and the shortfall in COLA means fewer resources for savings or emergencies.