2025 Social Security COLA Projected at 2.5%, Lowest Since 2021

The modest increase reflects cooling inflation but may not suffice for seniors facing rising costs.

The estimated 2.5% cost-of-living adjustment (COLA) for Social Security in 2025 is the lowest since 2021.
This increase would raise the average monthly benefit by approximately $48, starting in January 2025.
The official COLA will be announced by the Social Security Administration in mid-October, based on third-quarter inflation data.
Despite the adjustment, many seniors are struggling with high costs for essentials like housing, food, and healthcare.
Medicare Part B premiums are expected to rise by 5.9%, further eroding the net benefit increase for many recipients.