The recent 2.5% cost-of-living adjustment (COLA) for 2025 has left many social security beneficiaries feeling concerned, according to a survey of Americans ages 62 and older. The smaller increase is lower than the 3.2% increase in 2024 and 8.7% increase in 2023.
Only 96% of seniors receiving Social Security benefits feel the COLA increase is inadequate, while 80% are dissatisfied with it. As a result, 87% of seniors plan to supplement their income in 2025.
To make ends meet, seniors are turning to various options such as starting side hustles (35%), exploring freelance work (27%), or taking on part-time employment (24%). Contract work is also becoming an increasingly popular choice among seniors.
However, experts warn that drawing from retirement savings (19%) can have long-term consequences and deplete funds intended for future needs. Selling or downsizing assets (11%) may provide short-term relief but could limit long-term financial flexibility in the future.
Source: https://finance.yahoo.com/news/most-seniors-2025-cola-too-110053985.html