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At Extreme Investor Network, we understand the importance of financial security and retirement readiness. Recent surveys have shown that many individuals are concerned about outliving their savings, leading to increased financial insecurity.
In a recent survey by Prudential, it was found that 55-year-olds are the most financially insecure when it comes to retirement readiness. This group is facing a deep savings shortfall, with a median retirement savings of $47,950 compared to the recommended balance of $446,565.
As CEO of Prudential’s U.S. business, Caroline Feeney highlighted the additional financial insecurity faced by this group due to the lack of pensions and uncertainty surrounding Social Security benefits.
Lower Social Security COLA Forecast for 2025
One key aspect of retirement income is Social Security benefits, which are adjusted for inflation each year. However, current retirees may experience a lower cost-of-living adjustment (COLA) in 2025.
Estimates suggest that the Social Security COLA for 2025 may be around 3%, a decrease from previous years. Factors such as slowing inflation and the consumer price index for urban wage earners and clerical workers (CPI-W) are used to calculate these adjustments.
Despite the CPI-W being up 3.3% from the previous year, categories like food and services are still experiencing high inflation rates. This discrepancy has led some experts to argue that the COLA estimate based on CPI-W may not accurately reflect retirees’ real costs.
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