Social Security Benefits Are Only Rising 2.5% in 2025, but Here's Why That May Not Hurt Retirees

Millions of seniors today rely on Social Security to make ends meet. For some people, those monthly benefits are their primary source of income. Others have only those benefits to turn to for money in retirement, so it stands to reason that Social Security's annual cost-of-living adjustments, or COLAs, are important to beneficiaries.The purpose of Social Security COLAs is to help ensure that beneficiaries don't lose buying power over time. We all know that $1 today won't be worth $1 in 20 or 30 years. Similarly, Social Security benefits are pretty much guaranteed to lose buying power over time if they don't increase from one year to the next. That's why lawmakers decided to make those benefits eligible for automatic COLAs that are pegged to inflation.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool