Social Security COLA 2025 Prediction - September 2024 Update

Social Security Cola 2025 predictions are now coming out I'm going to be sharing with you what it is that they're saying as of September of 2024 and also how this is compared to the last 50 years what retirees might be anticipating and expecting expecting in their social security increases now as I mentioned cost of living adjustment is the cola for Social Security that increases the checks the benefits that recipients collect as a result of trying to keep up with the pace of inflation now the cost of living adjustment for Social Security it is based on the average inflation rate for Q3 which is months July through September of each year so we have already received uh the most recent one for July that came out in August now we are anticipating the one for August coming out in September now to let you know exactly when you can expect that and I'll be sure to do an update on this September 11th at 8:30 a.m. eastern standard time it is a Wednesday that is when the CPI report for August of 2024 is scheduled to be released and we will get that information that will let us know about the increase that we can anticipate for Social Security in that cost of living adjustment now let me also share with you what we have seen and a lot of people not happy with this as we have seen the numbers of inflation come down in 2024 so q1 Q2 it was higher and as we're coming into Q3 which is the data for which they base the cola up on we've seen it come down and a lot of people not happy about that because they're facing High inflation the rest of the year and then when they're actually counting the data it's coming down so January of 2024 the 12-month inflation rate for the US was 3.1 February it was 3.2 March it was 3.5% April 3.4% May 3.3% June 3% and guess what the first reading that's coming out for the cost of living adjustment was July and it was the lowest reading that we've had so far at 2.9% so let me know your thoughts in the comments if you're somebody that collects Social Security SSI SSDI retirement uh should it be higher than this current projection now this is the lowest one we've seen so far all of them have been over 3% and the first reading that we get is under 3% coming out for 2024 uh now like I said I'm going to share with you the latest predictions and what they're saying that's coming out but let me know should it be higher what should the number be to keep up with inflation and a lot of people saying that this is not even the real inflation that what we're feeling when we go to the grocery store at the gas pump just trying to live trying to pay rent make it dayto day they're saying it is significantly higher than what they are saying let me know your thoughts in the comments now I'm going to dive into this article that came out literally in the last 24 hours to give you updates on what they're saying for the cost of living adjustment but before I do do me a favor if you appreciate the updates keeping you up to speed on Social Security everything going on in the world that could impact you and your family take a quick second for me and hit that like button I see we got about 624 people live with me today September the 3 take a second hit that like button it just spreads this out so more people can get the latest updates as to what's going on with social security benefits also don't forget to hit subscribe to stay up to date it's totally free why not and make sure you're staying subscribed for some reason a lot of people letting me know that they've been unsubscribed from the channel uh they didn't unsubscribe don't know what's going on we think it's a settings issue with uh YouTube then make sure you are staying subscribed to stay up to date and as we approach this Cola announcement that's going to be coming out um I will make sure that you know so you can anticipate how much that increase the bump up in the check payments will be as we go into 2025 so let's go ahead and Dive Right In and I see those likes are up over 200 now thank you for that I appreciate the support I'm going to share with you this article and as always this is linked in the description below as you guys know I cite all the sources uh just like a book report so that way I can hold myself accountable to my community and you can also go ahead and read these along with me you can see them for yourself if you'd like now this article came out and it says here's how Social Security's 2025 Cola predictions compared to the past 50 years and why retirees may not be overjoyed with the numbers coming out and just as I shared with you the monthly inflation inflation rates they have been over 3% all year and now that we're reading the data they're starting to come down in Q3 now the article says that there are some words consumers hate seen and that is inflation this is usually one of them all it takes is a walk around a convenience a retail store to realize that nowadays A dollar is not going nearly as far as it used to several years ago now from an economic standpoint inflation is generally a bit better than deflation but that doesn't lessen the effects on the everyday person this is especially true for people on a fixed income like Social Security recipients let me know in the comments are you collecting Social Security luckily social security has a cost of living adjustment intended to help offset some of the infected affected inflation that occurs because people are getting those fixed income checks every month but the inflation it does not stay steady year toe every month it could go up which means that you have less Bine power Now official Social Security cost of living adjust or Cola numbers won't be released until October and once that's released know that I will be sure to share it here on the channel but it's never too early to begin thinking about the possible range that it could fall within unfortunately current Cola estimates likely won't send retirees jumping for joy when compared to the past five decades let's take a look as to why now how Social Security determines what the cola will be Social Security decides at Cola using one metric and that is the Consumer Price Index for for urban wage earners and clerical workers known as the CPI W and just to share with you there have been tons of pieces of legislation that have been re released in Congress saying we need to change this those that collect retirement they need to be based off of the CP which is the Consumer Price Index for the elderly those that are retired they're older they have different spending habits and needs than Urban wage earners or clerical workers and therefore this is not an accurate reading of what uh those collecting retirement or SSI or SSDI might actually need it's a monthly metric that considers everyday household items Transportation Food grocery costs and other relevant expenses below are some of the examples that are specific items to take into account that is household items like toilet tissue cleaning supplies detergent Transportation like gas public transportation rates vehicle maintenance food and groceries vegetables bread and milk Etc now the CPI W is based on the spending of amilies living in urban areas where more than 50% of the family's income is earned from clerical office or hourly wage occupations according to the US Department of Labor this is around 32% of the US population now Social Security averages the CPI data for the third quarter months this is July August and September and the readings come out one month later so in the month of August we got the readings for July September 11th we will get the second reading for August and it Compares them to the previous year's data to determine what the cost of living adjustment should be for the upcoming year so once we get those and it's finalized in November we will see that applied to checks in 2025 for example if the CPI W average for one year is 200 and then 205 for the following year the cost of living adjustment would be set to 2.5 because Five Points changes 2.5% of the starting from 200 now the CPI W data for one year is less than the previous year Social Security does not reduce the monthly benefits they will remain the same for example the CPW average for one year is 205 then the next it's 200 the cost of living adjustment increase would just simply be zero they would not reduce it now here are the Social Security cup projections for you and freedom I see you thank you for the $20 Super Chat thank you for your generosity I appreciate that a ton uh Freedom says Social Security payout has never been enough and there will always be inflation I'm on Social Security like millions and if I did not have my IRA retirement and worked 40 years uh it's need of full revamp right now and you are right on that freedom we're hearing that actually currently the program uh it's going to be going insolvent in roughly 8 to 12 years nobody knows the exact time it kind of depends on the cost of living adjustments and how quickly we deplete the funds uh but we're hearing that if they do not do changes to Social Security and soon there's going to be cuts across the board of 20 to 25% for everybody collecting any form of Social Security uh so if you collect for example $1,000 a month you would suddenly get a check of 800 or 750 and when you said hey what happened to my check they'd simply say sorry this is just happening to everybody we don't have enough funds to keep it 100% for all recipients so there needs to be some type of Reform and change otherwise there will be cuts across the board once we hit that insolvency point now Social Security Cola 2025 projection so this is where we're currently at the senior citizens league is a senior advocacy group known as the cola predictions known for its Cola predictions excuse me the group's predictions are far from foolproof and they have been off from time to time but they can give retirees a broad idea of what to expect to help them get a jump start on their financial planning now in its latest predictions that was released on August 14th so this was the one that came out last month after we received the data readings uh the senior citizens League projected that the 2025 Cola would be 2.57% down from 2.63% which was projected the previous month since Social Securities Cola only go over one decimal place let's meet in the middle and say that right now it is at 2.6% so they're saying a 2.6% increase for 2025 which I know a lot of people are are saying that is not going to cut it how the 2025 Cola Compares for the past 50 years well a 2.6% cola would be um the smallest since 2021 now the good news is that it means inflation has cooled down over the past couple of years but the bad news is that it would be the smallest Cola since 2021 it's kind of a Bittersweet trade-off 2.6% increase would also be less than 3.4% which is uh how much was received which is the average since 19 75 to give you a bit more perspective here are the largest five colas since 1975 the largest Was 1980 Co Social Security received a 14.3% increase how would you like to receive that now that would be incredible in 1981 the very next year Social Security got an 11.2% increase 1979 a 99.9% increase now 2023 two years ago the 8.7% increase because of all the inflation that took place in 2022 88.7% increase that is absolutely incredible uh the fourth highest one and that was just a couple years ago and in 1975 there was an 8% increase to Social Security and this information is coming directly from the Social Security Administration now the lowest increases that we have ever seen over the last uh since 1975 in years 2010 2011 and 2016 there was Zero no increases 2017 there was only a 3% increase 1987 1999 and 2021 there was a 1.3% increase 2003 1.4% and 2014 a 1.5% so we are definitely closer to the lower end and we're actually below the average they're saying according to the Social Security administration's numbers so a 2.6% cola wouldn't be the worst thing in the world but it's fairly to say that this is a lot of Social Security recipients who would appreciate a larger figure than this in either case it's better to prepare now for a modest increase than to be caught off guard when the official numbers are released in October so uh they are saying that it is looking like the predictions are coming out that the cost of living adjustment is probably going to be under 3% unless we see some major shifts in inflation CPI data readings coming out now like I said if you missed it earlier if you're just hopping on right now a little bit late um we are looking for the July August and September readings they come out one month uh after so last month was the first reading the second reading is going to be coming out September 11th which will give us a better idea of what that cost of living adjustment will look like when that comes out I'll be sure to share here on the channel and like I said unfortunately a lot of seniors and those collecting Social Security not happy with the fact that q1 Q2 all of the inflation readings that came out they were over 3% and literally the first one that is going to be part of the data that determines the cola was the first one that was under 3% so it's like Q3 it's coming down significantly uh well not significantly but it's still it's coming down and that's not really what somebody collecting a social security increase would want to see um but like I said as the information comes out I'll be sure to keep you up to date now in addition to that if you miss my previous videos you're going to want to check them out as we have five Social Security changes that are coming regardless of who wins the presidency we're hearing that there are some promises coming out from the candidates uh if you miss my video on former president Donald Trump saying that hey if I'm elected president one of the things that I want to do is get rid of the double taxation on Social Security when you're working your entire life you're paying into Social Security you're taxed on that and then he said then when you pull from it you're also taxed as well when you hit those certain thresholds s up to 50% 80 85% on the the highest threshold and he's saying this is not fair why are we taxing those that are collecting Social Security that have paid into it their entire lives get rid of the double taxation so if you miss those videos you're going to want to check them out right after this as uh I will link them in the comments for you regarding five changes that are arriving in 2025 regardless of who becomes the president and also uh what Donald Trump is proposing with getting rid of taxes on those collecting Social Security uh now we will see because Social Security we're hearing is a major topic for about a third of the nation they're saying Social Security is a main issue that they want to see addressed uh from the candidates coming up as we are entering into elections so as this comes up as there are more updates know that I will be sure to keep you guys up to date here on the channel so that way you know exactly what is going on now do me a favor if you appreciate that if you haven't done so yet please take a quick second hit that like button for me if I could just get oh looks like uh 60 more likes we'd have 500 likes while we're live that would be awesome subscribe to stay up to date and again if you want to read this article it is linked in the description below for you guys uh but that is the latest and like I said I'll be sure to keep you up to date here on the channel That next CPI data reading is coming out on the 11th today's the 3 so in about a week from now I will get you caught up on the latest update on that raing but thank you guys so much for joining me I'll catch you in the next one take care God bless this is Steve