Most Seniors Say 2025 COLA Is Too Low: 3 Ways They Plan To Supplement Social Security Income
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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The Social Security Administration has announced of a 2.5% cost-of-living adjustment (COLA) for 2025 — that’s lower than the 3.2% increase in 2024 and 8.7% increase in 2023. The smaller COLA increase is leaving many Social Security beneficiaries feeling concerned, according to a recent survey of Americans ages 62 and older conducted by Atticus.
The survey found that 96% of seniors receiving Social Security benefits feel the 2.5% COLA increase is inadequate, and 80% are dissatisfied with the adjustment. Because of the low COLA increase, 87% of seniors plan to supplement their Social Security income in 2025.
Here’s how seniors are planning to supplement their Social Security income in the coming year.
Side Hustles, Freelance Work and Part-Time Employment
According to the study, 35% of seniors are considering side hustles, 27% are exploring freelance work and 24% are planning to take on part-time employment. In addition, 11% are planning to take on contract work.
“These options are among the best ways to supplement Social Security income because they provide flexibility and can be tailored to individual skills and interests,” said Merritt Ryan, senior reactive data analyst.
“Side hustles and freelance work, in particular, allow seniors to set their own hours and work at their own pace, while part-time jobs offer a steady income stream without the demands of full-time employment,” she continued. “These approaches not only ease financial strain but also help seniors stay active and engaged.”
Drawing From Retirement Savings
Nearly 1 in 5 seniors (19%) said they will be drawing from retirement savings to compensate for the lower COLA. Any unplanned withdrawals can ultimately end up harming their future finances.
“[This] can significantly deplete funds intended for future needs,” Ryan said. “This approach, while tempting in the short term, can have lasting consequences that leave seniors vulnerable in their later years.”
Selling or Downsizing Assets
The survey found that 11% of seniors are planning on selling or downsizing their assets.
“[This] decision might provide immediate relief but could limit long-term financial flexibility or stability,” Ryan said. “It’s important to prioritize sustainable options over quick fixes.”
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