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.

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.

Wall St. Social Security benefits are rising 2.5% in 2025. The timing of your first higher paycheck depends on your date of birth. There are ways to improve your finances if your COLA isn't enough. Smart Social Security planning could help you retire early.

The full retirement age (FRA), the age at which retirees can claim their Social Security benefits, has been gradually increasing and will increase again in 2025. This year, those born in 1959 will reach their FRA at 66 years and 10 months, two months later than those born in 1958. For those born in 1960 or later, the FRA will rise to 67.

Technically speaking, this is the 2024 COLA, as it goes into effect in December 2024. However, because Social Security is paid a month in arrears, this increase will be reflected in the payment that beneficiaries receive in January. For this reason, it is often referred to as the 2025 COLA.

One of the most important aspects of Social Security is that recipients are eligible for a cost-of-living adjustment (COLA) every year. These annual increases are designed to help seniors and those receiving Social Security benefits keep up with inflation.

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.

Each year, tens of millions of retirees collecting Social Security benefits anxiously await the upcoming COLA, or cost-of-living-adjustment (COLA). The COLA is a pivotal part of the Social Security program that reflects the next year's increase in Social Security benefits.

Social Security recipients will need to wait an extra two months to reach full retirement age starting in 2025. For people born in 1959, the full retirement age will now be 66 years and 10 months. The full retirement age is based on birth year.