In 2022 and 2023, many seniors on Social Security struggled to keep up with surging bills. In 2025, costs are expected to rise at a much slower pace. This means that even with just a 2.5% COLA, Social Security recipients may not end up losing out on so much buying power.

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.

Last month, the Social Security Administration revealed that benefits will receive a 2.5% COLA increase in 2025

But a 2.5% COLA for 2025 stings because it's the smallest one to arrive in years. At the start of 2024, seniors on Social Security saw their benefits increase by 3.2%. And the year prior, Social Security recipients got a record-breaking 8.7% COLA. So a raise of just 2.5% seems awfully meager by comparison.

A 2.5% cost-of-living adjustment, Medicare Part B premiums and tax liabilities are key changes to watch for that affect 2025 Social Security benefits.

Less than six weeks remain before retirees will get a raise. Last month, the Social Security Administration announced that the next cost-of-living adjustment (COLA) will be 2.5%. The adjustment takes effect on Jan.

Gen Xers say they are worried they may not receive their benefits at retirement age if Social Security funds are depleted.

Various news stories about Social Security have made headlines throughout the year, ranging from questions concerning its solvency to arguments over how the program should be funded. Particulars

The reason Social Security benefits are eligible for an automatic cost-of-living adjustment (COLA) each year is that without an inflation-based boost, seniors would be guaranteed to lose buying power from one year to the next.