Social Security Benefits to Climb 2.5% in 2025
Published On Oct 10, 2024, 8:53 AM
The Social Security Administration announced a 2.5% increase in monthly benefits for 2025, raising the average benefit for retired workers to $1,976, up from $1,927. This increase is part of a cost-of-living adjustment (COLA) to help beneficiaries cope with inflation. The adjustment, while lower than the previous year's 3.2% and substantially less than the 8.7% increase in 2023, aligns with the average annual increases over the past two decades. Economists suggest this moderate increase reflects a deceleration in inflation, indicating a need for stabilizing purchasing power instead of sharp adjustments.
Stock Forecasts
XLP
Positive
The increase in Social Security benefits may lead to increased spending by beneficiaries in essential sectors such as retail and consumer goods, potentially boosting stock performance for companies in those industries.
VHT
Positive
Increased disposable income among retirees and beneficiaries may positively impact sectors such as healthcare, suggesting that companies in this space could see improved performance as spending increases on medical and wellness services.
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Social Security Benefits to Climb 2.5% in 2025
Oct 10, 2024, 8:53 AM
The annual cost-of-living adjustment will increase monthly checks for millions of beneficiaries, including retirees and disabled workers.