Social Security COLA Insufficient for Rising Medicare Costs Among Seniors

Understanding the Financial Strain on Older Americans

In an alarming announcement made on October 24, 2025, the National Council on Aging (NCOA) revealed that the upcoming 2.8% cost-of-living adjustment (COLA) for Social Security benefits will not adequately address the financial burdens facing older Americans. This increase, while reflecting inflation, fails to take into account the steep rise in Medicare costs predicted for the year ahead.

The COLA is designed to help seniors keep pace with inflationary pressures, yet the reality for many older adults is far grimmer. With Medicare premiums and deductibles projected to increase anywhere from 4% to 12%, the modest COLA would be consumed entirely by these rising healthcare expenses. This situation forces older Americans to make heart-wrenching choices among essential needs such as healthcare, food, and housing.

Recent statistics underscore the severity of this crisis. In 2024, the poverty rate among individuals aged 65 and older surged to 15%, impacting more than 9 million seniors, marking a troubling trend as it is the only age group experiencing an increase in poverty. This grim data not only highlights the inadequacies of the COLA but also shines a harsh light on the broader economic challenges facing elderly citizens, many of whom have dedicated their entire lives to hard work.

Financial insecurity in older age comes with life-altering ramifications, particularly regarding health outcomes. Studies conducted by NCOA in partnership with the LeadingAge LTSS Center at UMass Boston reveal a shocking reality: low-income older adults earning $20,000 or less annually can expect to live an average of nine years less than their wealthier counterparts who earn $120,000 or more. This disparity in life expectancy starkly illustrates the health impacts of poverty experienced by the elderly population.

In response to the COLA announcement, Ramsey Alwin, CEO of NCOA, stated, "While the COLA reflects inflation rates, it woefully fails to address the actual cost of living for older Americans, who are already burdened with significant healthcare expenses. This inadequacy forces them into difficult financial decisions that no one should have to make."

There’s an urgent need for comprehensive reform in how benefits are determined for older Americans, given the rising costs of healthcare and living. It’s evident that a merely reactive approach to adjustments like COLA is insufficient. Stakeholders must advocate for policies that ensure seniors can age with dignity and security, free from financial distress.

The conversation about COLA and its impacts is more than just numbers on a page; it’s about the well-being of millions of older Americans. To address these issues, the country must come together to form solutions that nurture the aging population rather than allow them to suffer due to bureaucratic inadequacies.

For over seventy years, the National Council on Aging has been a voice for seniors, advocating for their right to age well. Established in 1950, NCOA continues to work tirelessly to provide necessary resources and tools, ensuring that older adults across America have access to the support they deserve. As we move forward, collective action and enlightened policy making will be essential in combating the financial insecurity faced by our elderly citizens. Only then can we ensure a secure and healthful aging experience for all.