IMPORTANT DISCLOSURE INFORMATION
The following presentation by New England Capital Financial Advisors, LLC (“NECFA”) is intended for general information purposes only. No portion of the presentation serves as the receipt of, or as a substitute for, personalized investment advice from NECFA or any other investment professional of your choosing. Please see additional important disclosure at the end of this penetration. A copy of NECFA’s current written disclosure Brochure discussing our advisory services and fees is available upon request or at www.newenglandcapital.com.
Social Security COLA 2025
More than 71 million Social Security beneficiaries can expect a 2.5% cost of living adjustment (COLA) increase in 2025, based on the Q3 inflation data so far.
In other words, the COLA will raise the average benefit by $48 to $1,968 a month. This is a welcomed increase for some, given inflation during the past year, but it is a drop off from bumps in recent years.
The Social Security Administration is scheduled to announce the official 2025 benefits increase on October 10. But don’t expect the final number to change much, if at all, at this point.
The adjustment is based on the average annual increase in the consumer price index (CPI) for urban wage earners and clerical workers (CPI-W) from July through September. Through August, CPI-W rose 2.4% in the past 12 months, compared to a 2.5% increase in CPI.
Over the years, I have learned that almost every retiree (91%) says that Social Security is a source of their retirement income. Almost two-thirds (62%) say it’s a major source.
When we created your retirement strategy, we made certain assumptions about income and expenses. If you think this year’s COLA will make your budget a bit more challenging, please let me know as soon as possible. Sometimes, a slight adjustment can be all it takes to make you feel more comfortable as we head into 2025.
The outlook for the Social Security cost of living adjustment is a forecast, and forecasts or forward-looking statements are based on assumptions, subject to revision without notice, and may not materialize.
CNBC.com, September 11, 2024. “Social Security cost-of-living increase for 2025 could be 2.5% — the lowest since 2021, estimate finds”
TheHill.com, September 11, 2024. “The estimated Social Security increase for 2025 keeps dropping”
EBRI, Retirement Confidence Survey, 2024.
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by New England Capital Financial Advisors, LLC [“NECFA”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from NECFA. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. NECFA is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the NECFA’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.newenglandcapital.com. Please Note: NECFA does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to NECFA’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please Remember: If you are a NECFA client, please contact NECFA, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.