Cost of living adjustment: What retirees can expect in 2025

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Remy Blaire: I’m Remy Blaire, reporting from the New York Stock Exchange. Here’s what we’re watching today on TheStreet.

Wall Street cooled on Thursday, just a day after the Dow and S&P 500 set new records. Persistent inflation and a weakening employment ratio contributed to the decline. Investors are now looking to the September producer price index report due on Friday. And investors will get earnings reports from several big banks — including JPMorgan Chase and Wells Fargo.

Related: Make These Money Moves to Retire Early

In other news – the Social Security Administration has unveiled its 2025 cost of living adjustment – or COLA. COLA 2025 will increase by 2.5%, the smallest annual increase since 2021.

That 2.5% translates into about $50 a month, bringing the average monthly benefit for retirees to $1,976 a month. Married couples who both collect Social Security benefits will see their payments increase by about $75 a month. The new benefits will take effect in January 2025.

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Despite the increase, many retirees feel it is not enough to keep up with the effects of inflation – despite falling prices. AARP’s CEO agreed, saying in a statement: “We must do more to ensure that older Americans can continue to rely on Social Security. AARP continues to call on Congress to take bipartisan action to strengthen Social Security and ensure a long-term solution Americans can count on.”

More than 72 million Americans currently receive Social Security benefits.

That will do for your daily briefing. From the New York Stock Exchange, I’m Remy Blaire with TheStreet.

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