This is intended to help seniors and other Social Security recipients keep up with inflation and is based on Consumer Price Index (CPI) data from the third quarter of 2024. While the 2.5% COLA isn't exactly news at this point,

One positive aspect of Social Security is that the program is set up to adapt to economic changes. Each year, for example, Social Security benefits are eligible for an automatic cost-of-living adjustment.

The Social Security cost-of-living adjustment for 2025 is the lowest since the post-Covid inflation spike. Yet retirees still face high prices.

Social Security's 2.5% cost-of-living adjustment (COLA) for 2025 was disappointing for many seniors. It added just $49 to the average monthly check, and that's not enough for a lot of households. Most U.S. seniors will have to look to their savings or other government benefits if their Social Security benefits don't go far enough.

When you are on  Social Security, you can expect your retirement benefits to increase during most years. That’s because Cost of Living Adjustments (COLAs) typically happen automatically from year to year.

Social Security beneficiaries may face taxes if they have additional income sources or due to the COLA increase. Here's how to determine if you're affected.

Social Security plays a big role in many Americans' retirement security. In fact, 40% of Americans ages 65 and older rely on Social Security for at least half their income, according to the AARP.