New round of Social Security payments will be made this week

Published On Feb 12, 2025, 7:00 AM

A new round of Social Security payments will be issued this week, with some beneficiaries receiving substantial amounts. The Social Security Administration has implemented a 2.5% cost-of-living adjustment (COLA) for 2025, the lowest since 2021, as inflation has started to ease. The payment schedule varies depending on when beneficiaries claimed their benefits and their birthdays. This increase was designed to help beneficiaries cope with inflation and the rising cost of living, although prices remain high and may still strain budgets for many households.

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Stock Forecasts

AI prediction results, not representative of any investment advice.

XLP

Positive

The increase in Social Security payments could positively impact consumer spending as beneficiaries use these funds for daily expenses. This boost may benefit sectors like retail and consumer goods, where spending is likely to see an upward trend.

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XLY

Negative

As inflation continues to affect the economy, and with the 2.5% COLA being lower than in previous years, the broader economic implications could negatively affect sectors sensitive to consumer spending. Companies in the discretionary segment may struggle if inflation pressures remain high.

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