ICE Raids Have Sent Latino Shoppers Into Hiding and Big Brands Are Hurting
Coca-Cola and other companies have seen a drop in sales due in part to a pullback by Hispanic consumers.
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Yahoo
32 minutes ago
- Yahoo
Social Security: Retirees' checks top $2K for the first time
(NewsNation) — The average Social Security benefit for retired workers hit an all-time high in May, surpassing $2,000 for the first time. While the $2,000 mark is largely symbolic, it underscores how central Social Security has become to the retirement income of millions of Americans over the program's nine-decade history. Monthly payments to nearly 53 million retired workers averaged $2,002 in May, up 4.5% from $1,916 a year earlier, according to the Social Security Administration. Why are more Americans filing for Social Security benefits? But that doesn't mean retirees are living large. In fact, this year's 2.5% cost-of-living adjustment, which took effect in January, was the smallest since 2020. It explains part of the rise in average check size but not all of it. Other factors, such as demographic changes in the beneficiary pool and the implementation of the Social Security Fairness Act, have likely contributed as well. Social Security benefits increase each year to keep pace with inflation, so a gradual rise in the average check is expected. Still, a few recent factors may be pushing payments higher. The Social Security Fairness Act, signed into law earlier this year, boosted benefits for around 3 million people who receive pensions from jobs not covered by Social Security. Most of those affected by the new law were expected to see their monthly checks increase by an average of $360, with some receiving up to $1,000 more each month. Students urged to seek aid now as FAFSA deadline nears Other changes to the beneficiary pool could also be contributing to the increase in the average benefit amount — for example, if more people with higher lifetime earnings are claiming benefits or if more are filing after their full retirement age. One thing is clear: Far more people are filing for retirement benefits now than in previous years. The surge is partly due to demographic changes as America's population ages, but data patterns also suggest that anxiety over the Trump administration's handling of the system may be prompting some to file earlier. The Social Security cost-of-living adjustment for 2026 could be 2.5% yet again, according to a new projection from the Senior Citizens League released Wednesday. That estimate is based on the latest inflation data and would translate to about $50 more per month, on average, for retired workers, but it's far from set in stone. Each year, the government determines the COLA by comparing the average inflation rate from July to September with the same period in the previous year. That calculation is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Inflation rose slightly last month as grocery prices ticked higher This year's COLA measurement window could prove especially important, as many economists expect the effects of President Trump's tariffs to start showing up in the inflation data in the months ahead. If the president's trade policies do push up inflation between July and September, retirees could see a larger COLA in 2026 than current estimates suggest. The recent $2,000 milestone applies only to retired workers, who comprise approximately 75% of the 69.6 million Social Security beneficiaries. Across all recipients, the average monthly benefit was $1,858 in May. Retirement checks vary from person to person based on how long they worked, how much they earned over their career and when they started collecting benefits. Social Security calculator: Figure out your monthly benefits That last variable, the age at which someone starts collecting, has been in the headlines recently due to the surge in claims. Experts worry that fear about the program's future is pushing some to claim benefits earlier than planned, often permanently reducing their monthly checks. Filing for Social Security as early as possible can reduce annual retirement income by thousands of dollars compared to waiting. 'It's basically an irrevocable decision, which is all the more reason why people should be very cautious about when they make it,' said Charles Blahous, a researcher at the Mercatus Center at George Mason University, in an interview with NewsNation earlier this week. Someone who turns 62 in 2025 would see their monthly benefit reduced by approximately 30% compared to what it would be at their full retirement age of 67. Meanwhile, those who delay claiming until after their full retirement age receive an 8% increase for each year they wait, up to age 70. In 2025, the maximum monthly retirement benefit is $2,831 for someone claiming at age 62, but it rises to $5,108 for those who wait until 70. That's a difference of more than $27,000 in annual income. Average monthly Social Security benefit in across major categories: Retired workers: $2,002 Nondisabled widow(er)s: $1,864 Disabled workers: $1,582 Children of deceased workers: $1,139 Spouses of retired workers: $950 Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
5 hours ago
- Yahoo
Coca-Cola and other companies losing sales as Hispanic residents stay home and skip shopping over arrest fears
Coca-Cola and other major brands have seen sales slip in recent months, partly due to Hispanic customers pulling back from stores and staying home amid 'a fear of Immigration and Customs Enforcement raids.' The soft drink giant expressed concern after its sales volume in North America fell 3 percent in the first quarter of 2025. While there is no data that unequivocally links Hispanics' immigration fears to pulling back from spending, executives at big brands acknowledged those concerns are likely having some impact on sales, The Wall Street Journal reports. The company emphasized the importance of the 64 million U.S. Hispanic consumers who hold $2.1 trillion in spending power. 'In addition to challenges with severe weather and calendar shift, volume was impacted by weakening consumer sentiment as the quarter progressed, particularly among Hispanic consumers,' Coca-Cola's CEO James Quincey said during an earnings call on April 30. 'Some of the geopolitical tension and Hispanic pullback also affected the Mexican [market], particularly the border region, which is very connected to the U.S.,' Quincey added on the call. The sentiment was backed by Jim Sabia, the president of Constellation Brands, which owns Modelo and Corona. Sales of Modelo, which overtook Bud Light as America's best-selling beer in 2023, have also dipped slightly lately. 'There is a fear of the ICE raids,' Sabia said at the Goldman Sachs Global Staples Forum last month. 'There's a fear out there, so these consumers are changing their behaviour,' Sabia said of Hispanic consumers. 'That's in the off-premise trade. In the on-premise trade, they're cutting back on social events. They're cutting back on restaurants.' President Donald Trump's trade tariffs are also likely impacting Hispanic consumers' shopping habits. In one of the company's monthly surveys earlier this year, Hispanic consumers said they were worried about the Trump administration's immigration crackdown and inflation from the tariff war. The survey found 75 percent of Hispanic consumers were scaling back on eating out and going to social gatherings where beer was served, The Journal noted. Likewise, the retailer JD Sports said it was noticing a 'huge decline in traffic' in its Shoe Palace stores, which have a large Latino customer base. CEO Regis Schultz said he could 'definitely' see the impact of the immigration policy on footfall. Coca-Cola's CEO said the company was also suffering following false rumors the company laid off Latino staff and reported them to ICE agents. The fake claims prompted Hispanic customers to boycott the drinks. 'It wasn't the first piece of misinformation, disinformation, or anything else nefarious about the Coca-Cola brand, and I'm sure it won't be the last,' Quincey said. 'But we are very focused on recovering from it.'
Miami Herald
10 hours ago
- Miami Herald
Trump tariffs could hike canned food prices up to 15%, trade group says
Dive Brief: The 50% tariff on imported steel levied by the Trump administration could increase canned food prices between 9% and 15%, according to the Consumer Brands trade group estimated up to 20,000 U.S. food manufacturing jobs could be at risk if tariffs cause consumers to curtail their purchases of higher-priced canned goods and CPG companies opt to switch away from tin-plate steel to cheaper packaging steel tariffs are impacting a slew of products in the food space, including sauces, seafood, soup and vegetables. Dive Insight: As the White House doubles tariffs on steel and aluminum, CBA moved quickly to underscore the negative impacts they could have on manufacturing and consumer shopping habits. The CBA, whose members include Coca-Cola, The Campbell's Company and Del Monte Foods, noted that while the majority of ingredients and inputs are sourced from the U.S., there are exceptions. A major one is tin mill steel. Domestic can makers and canned food producers import nearly 80% of the material from foreign trade partners, Robert Budway, president of the Can Manufacturers Institute, said last week. Conagra Brands CEO Sean Connolly said in April that his company has "no choice" but to import the majority of its canned food packaging, estimating about 75% of the tin plate steel lines in the U.S. have been eliminated since 2018. CFO David Marberger said last week that the Hunt's tomato and Wendy's canned chili maker was working through how it will "mitigate" the higher cost for the material on its business. "Unfortunately, the domestic steel industry does not produce tin mill steel in the quality or quantities needed by U.S. can makers," Tom Madrecki, vice president of supply chain resiliency at CBA, said in a statement. "The Trump administration should fine tune its approach to recognize supply chain dependencies and protect all U.S. manufacturers, workers and consumers." A handful of other food and beverage manufacturers have warned that tariffs will impact their operations. Campbell's, which imports tinplate steel for cans and canola oil for chips, noted trade headwinds could cut into its fiscal-year earnings by 3 cents to 5 cents a share. Coca-Cola said in February that the Sprite and Dasani maker may shift some products sold in aluminum cans to PET bottles if input costs rise in light of new tariffs. Copyright 2025 Industry Dive. All rights reserved.
