Recipients of Social Security received an increase in benefits in 2025, as they do every year. However, new economic data and policies could spell trouble.

The cost-of-living adjustment (COLA) applied to Social Security payments in any given year is based on CPI-W inflation from the third quarter of the previous year. In that sense, COLAs are a reimbursement mechanism to compensate retirees for the buying power benefits lost in the previous year.

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 have relied on annual cost-of-living adjustments (COLAs) to maintain their purchasing power.

Every year, the Social Security Administration, or SSA, examines inflation data and adjusts Social Security benefits accordingly. In short, the annual cost-of-living adjustment, or COLA, is designed to help retirees keep up with the rising cost of goods and services.

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’s cost-of-living adjustment is expected to shrink in 2026 and could be the lowest increase seen in a decade.

The Social Security COLA increase for 2025 is finally here, and so is your boosted benefits check. Here's when you can expect it.

A majority (54%) of retirees called the COLA insufficient, and only 25% thought that benefits increased by an appropriate amount. What's more, 81% of survey respondents said that the COLA won't help them keep up with essential living expenses. When we look at the types of inflation that impact seniors the most, it isn't hard to see why.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. from 24/7 Wall St. Social Security benefits are rising 2.

Social Security is set to undergo several changes in 2025 that will impact millions of Americans. The average payment will increase by 2.5% due to a Cost of Living Adjustment (COLA). While this is a modest boost,