The average Social Security payment will rise by more than $50 per month starting in January, thanks to the federal government’s 3.2% annual cost-of-living adjustment, or COLA. A 3.2% increase in the average Social Security check—about $1,

Social Security COLA increase 2025: The Cost of Living Adjustment (COLA) is a system that helps adjust Social Security benefits to match inflation. It aims to make sure that the purchasing power of Social Security recipients stays consistent, even when the prices of goods and services rise due to inflation.

As inflation begins to cool, the Social Security cost-of-living adjustment (COLA) for 2025 has been set at 2.5%. This increase, although modest compared to the previous years, is a crucial lifeline for retirees,

Social Security's 2025 cost-of-living adjustment (COLA) took effect in January. Benefits will increase 2.5% this year, the smallest pay bump for seniors since 2021. Indeed, more than half of retired workers surveyed by The Motley Fool in October said the COLA was insufficient.

Social Security cost-of-living adjustment, or COLA, is based on third-quarter inflation data, so it was officially announced in October when the last of the official CPI data from the third quarter was released.

The vast majority of seniors surveyed about Social Security's COLA say the number should be as much as five times higher than the government is forking over this year.

Many retirees look forward to Social Security's annual cost-of-living adjustment (COLA), which for 2025 is 2.5%. The COLA technically takes effect in December, with beneficiaries seeing updated payments in January.

The Social Security cost-of-living adjustment, or COLA, for 2025 is a 2.5% increase. That means the monthly benefits checks for more than 72.5 million Americans will see their lowest annual bump in four years.