Social Security COLA Increase Falls Short as Older Adults Struggle to Afford Basics
A huge number of the older population are overwhelmed by financial burden and the higher Social Security cost-of-living adjustment (COLA) increase is unlikely to provide any relief. Furthermore, while consumer prices gave deflationary cheer to some it is still difficult for retirees to fund the basics like housing, food and healthcare.
COLA Raise to Be Too Little
With Oct. 10,2025, the scheduled date of Social Security’s COLA announcement for that year, an analysis projects a mere 2. That’s a lot lower than the 8.7% rise in 2023 and the 3.2% increase this year, said Mary Johnson, an analyst for social security and medicare at The Senior Citizens League. This bump will only mean about $48 more in the average Social Security benefit check that goes to an individual retiree and lifts it to about $1,907 a month.
Sadly, the increase in Medicare Part B premiums will partially bite into that victory. And the premium he pays for Part B is expected to rise $10.30, to $185 per month (additional changes will affect Social Security checks), from $134 this year.
For many retirees, the slight increase does little to help them live financially free. The feedback from Susan, a 71-year-old central Virginia woman was more blunt: “We spend $300 a week on groceries and $48 is not going to buy us any groceries. Even people like Susan who are just barely scraping by with higher electric bills and extra expenses for home repairs.
An escalating crisis for the elderly
This COLA hike comes as a new study finds that nearly half of adults age 60 and older cannot afford home energy bills, food or medications because of rising costs. Across the nation, a staggering 27 million households — or 49.6% of older adults — cannot afford the true costs of living that include housing, food, transportation, and healthcare according to new data from Wider Opportunities for Women (WOW). This data is from 2020, before the Covid-19 pandemic had fully shown its teeth against American workers. Fast-forward to today, and the situation is likely even bleaker.
How The Elder Index, Which Measures Income Needed for Older Adults To Afford Basic Needs Independently, Illuminates The Problem A single, healthy retiree, for instance, would need $2,059 per month to live in West Virginia and $3,000 per month in California. The three-year average for the nation is $2,479 and $29,748 per year. Since Social Security checks may not even be sufficient to cover these expenses, many older adults are having a difficult time doing so.
A Call for Action
Some experts warn unless large policy changes are enacted, the financial woes of today’s older Americans will continue to deepen. The income-to-expenses gap will only widen with the growing ranks of 65-year-olds. “Really unless we see sweeping policy changes of some kind, I think we’re going to leave older adults behind,” said Jessica Johnston, the National Council on Aging’s senior director.
While the income of older adults grew a little from 2018 to 2020 according to the study, over 60% had their total assets decrease during this period. Even more troublesome: In the bottom 20% of American households ages 60 and older, fewer than 15 million had no assets whatsoever, many of them in debt.
Millions of older adults are still “living on the edge,” said Marc Cohen, co-director of the LeadingAge LTSS Center.
Summary: A Crisis That Can Not Be Denied
The money problems of the aging are at critical stage. Though the due Social Security COLA increase in upcoming months will be a helping hand, but that too will not even scratch the surface of this never ending crisis. More meaningful actions need to be taken as the population ages so that older Americans can continue to live with dignity and financial security.
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