'Costs Still Outpace Social Security COLA Increases'

"The 2.5% COLA for Social Security benefits in 2025 is nowhere near enough to allow older adults to afford their true cost of living," said Ramsey Alwin, president and CEO of the National Council on Aging, following the announcement of the Social Security cost-of-living adjustment (COLA) for 2025.

"The poverty rate for people age 65 and older remained at an unacceptable 14% in 2023," he continued. "Our research with the LeadingAge LTSS Center at UMass Boston shows that about half (or a little over 27 million) of households with adults age 60 and older have an average income below what they need to cover their basic needs. Social Security must keep up with this reality.

"Social Security recipients have worked hard their entire lives, played by the rules and raised the next generation. With 11,000 people turning 65 every day until 2027, we cannot ignore that an increasing number of them cannot make ends meet.

"The Census Bureau calculated that Social Security benefits made up the entire income for 28% of recipients. The average Social Security retirement benefit in February 2024 was about $1,862 per month (about $22,344 per year), and many people get much less.

"We continue to advocate for the adoption of the Elder Index as a more accurate measure of the income older adults need to meet their basic needs. It includes the costs of housing, health care, transportation and food.

"Aging with dignity should be a right for all, not a privilege for a few."