The 2025 Social Security cost-of-living adjustment (COLA) came in at just 2.5%. That's well under the 3.2% retirees got last year and far less than what many were hoping for. The high inflation over the last few years has made it difficult for retirees to afford their basic expenses,

Those born between the 1st and 10th of any date will be paid on the first wednesday of the month. The SSA pays those with birthdays between the 11th and 20th second wednesday, and all the remaining beneficiaries on the third wednesday of the month.

But when we look back at the data, it becomes clear that a 2.5% Social Security COLA isn't so terrible. In fact, it's a lot more generous than some of the COLAs beneficiaries have seen in the past. In 2024, Social Security benefits rose by 3.2%. The year prior, they increased by 8.7%. And in 2022, a 5.9% COLA came through.

Social Security's annual cost-of-living adjustments (COLAs) are calculated based on how inflation changes in the third quarter, the three-month period from July through September. In this scenario, inflation is measured using a subset of the Consumer Price Index (CPI) known as the CPI-W.

With fewer Part D plans and a $2,000 out-of-pocket cap, beneficiaries must rethink their Medicare drug coverage for 2025. Medicare expert Jae Oh shares what’s new and how to adjust.

Each year, the SSA increases the benefits payments to match inflation. To help beneficiaries budget notices are sent. Here’s when you’ll get yours.

Declining inflation led to the lowest cost-of-living adjustment since 2020, with the 2025 COLA set to rise 2.5%.

A 2.5% cost-of-living adjustment increase will mean an extra $50 a month for most Social Security and SSI recipients.