The cost-of-living adjustment (COLA) for 2025 has become a hot topic among retirees and financial analysts alike. Annually, COLA is adjusted to ensure Social Security benefits maintain their purchasing power. While the next COLA won’t be announced until October, experts predict a 2.63% increase for 2025.1 Surveys show 40% of retirees are dissatisfied with this adjustment – and some even plan to return to work to make ends meet.2 Use this guide to understand the current state of Social Security benefits and receive tips for reentering the workforce.
Putting the COLA increase into context
When inflation increases, the cost of goods and services rises, leading to a higher COLA to help maintain purchasing power. Conversely, if inflation decreases, the cost of living goes down, resulting in a lower COLA. In theory, COLA is adjusted to match inflation rates, ensuring people’s income keeps pace with the changing cost of living.
Inflation has significantly declined since reaching historic levels in 2022. The upcoming COLA is expected to be smaller as a result. However, some seniors don’t feel the COLA has kept up with their needs. In a Senior Citizens League survey, 34% of members reported they applied for food stamps or visited a food pantry in the last 12 months.3
To address a gap in income, some seniors are returning to the workforce. Of this group, 61% intend to seek part-time employment while only 14% are seeking full-time employment.2 If you find yourself entertaining either option, the tips below can help you get a job when you’re over 60 years old.
Navigating a Return to Work
Assess your skills – or interests
Consider the areas where you have the most experience and think about how they can be applied in today’s job market. Updating your resume to highlight your most relevant skills and accomplishments is crucial. Make sure to include any recent volunteer work or part-time positions, as these can demonstrate your ongoing engagement and capability.
However, retirement is also an opportunity to explore new interests, so don’t feel confined to what you’ve done in the past. If you have a passion for gardening, for example, you might find joy in working part-time at a local florist. This not only allows you to stay active but also lets you engage in work that you genuinely enjoy. The key is to look for opportunities that align with your interests, offering a fulfilling and enjoyable way to spend your retirement years.
Leverage your network
Reach out to former colleagues, friends, and family members to let them know you’re looking for work. Networking can often lead to job opportunities, whether they be full-time, part-time, or contract work, that aren’t advertised publicly. Additionally, consider joining professional organizations or attending industry events to meet new contacts. Online platforms like LinkedIn are also valuable tools for connecting with potential employers and showcasing your expertise.
Be open to learning
The modern workplace can be quite different from what it was a few decades ago, with new technologies and work practices. If you want to find a part- or full-time job in a professional setting, take advantage of online courses and workshops to update your skills, particularly in areas like computer literacy and digital communication. Embracing these changes not only makes you a more competitive candidate but also demonstrates your willingness to grow and evolve, which is highly attractive to employers. With the right preparation and mindset, re-entering the workforce can be a fulfilling and successful journey.
The COLA for 2025 highlights the ongoing struggle for many retirees to maintain their standard of living in the face of rising costs. As the economic landscape continues to evolve, retirees must weigh their options carefully, balancing the benefits of additional income against the potential stresses of returning to work. A Financial Advisor can help retirees strategize for their current and future needs. General Electric Credit Union (GECU) members can meet with an Investment Services Financial Advisor, available through CUSO Financial Services, L.P. (CFS),4 to start the conversation.