There's a Big Problem With Social Security's
2025 Cost-of-Living Adjustment (COLA)
The Motley Fool, by Sean Williams
Posted By: crashnburn, 10/19/2024 11:23:10 PM
For Social Security's more than 68 million beneficiaries, nothing loomed larger last week than the annual reveal of the program's cost-of-living adjustment (COLA). Based on 23 years of annual surveys from Gallup, 80% to 90% of retirees (including 88% in 2024) have consistently pointed to their Social Security income as being necessary to make ends meet. For a majority of retired-worker beneficiaries, knowing how much they'll be receiving each month in the upcoming year is critical information. While Social Security's 2025 COLA marks the fourth consecutive year of an above-average payout, it also comes with a sizable, and unavoidable, problem.
Short version: SS up 2.5%, but the deduction for Medicare is up 5.9% to $185.
And our part D, drug coverage is going up from $5 a month to $40 a month (each) in 2025. Between us we have 1 ongoing prescription. But, even if you have zero prescriptions you are required to have part D coverage or you risk a big penalty if you don't pay for it now and then need it later. On top of that, when the doc tried to prescribe one of those pricey new drugs for my IBS, SilverScript by Aetna refused to cover it. At first, I was annoyed. Now, I am grateful that I am not dependent upon big pharma.