In March, data from the Social Security Administration showed a decline in the number of people receiving federal payments, with about 7.27 million recipients compared to 7.284 million in the prior month. The data also revealed changes in the number of recipients based on age groups, with those qualifying based on age slightly increasing while those considered blind and disabled decreasing. The numbers of recipients under 18 and in the 18-to-64 age bracket also fell, while those 65 or older increased slightly.
The reason for the decline in the overall number of people receiving federal payments for the month was unclear, and Newsweek reached out to the Social Security office for comment. The State of Social Security has become a topic of concern for many older Americans who rely on these payments for daily expenses. Recent forecasts suggest that retirees may receive an improved income from the Social Security agency, with a cost-of-living adjustment estimated to be around 3 percent for 2025. This adjustment is a response to elevated inflation, which has remained above the central bank target of 2 percent following the COVID-19 pandemic.
Inflation in the U.S. has risen to 9 percent, marking the largest yearly increase since 1981, with the Federal Reserve taking steps to slow spending and curb price increases. Despite this, some analysts question whether a 3 percent cost-of-living adjustment will adequately offset the impact of rising prices on seniors. Finance expert Michael Ryan expressed concern that the increase may not fully protect seniors’ purchasing power as they struggle to afford basic necessities like health care, food, and housing.
Newsweek is known for challenging conventional wisdom and seeking common ground in its reporting. The decline in the number of people receiving federal payments from the Social Security Administration raises questions about the impact on beneficiaries, particularly older Americans who rely on these payments for their daily expenses. The forecasted 3 percent cost-of-living adjustment for 2025 is seen as a response to elevated inflation, but some analysts worry it may not be enough to protect seniors’ purchasing power in the face of rising prices for goods and services.
As the debate over Social Security and inflation continues, Newsweek remains committed to providing insight and analysis on these important issues. The magazine’s dedication to challenging conventional wisdom and finding connections in the search for common ground will likely lead to continued coverage of topics related to Social Security, retirement, and the economy. With millions of Americans depending on Social Security payments, including retirees and those with disabilities, the impact of inflation and government adjustments to benefits will remain a key area of interest for readers and policymakers alike.
