Social Security Set to Announce 2025 COLA Increase
The anticipated adjustment aims to address inflation but may fall short of covering rising costs for retirees.
Overview
- The Social Security Administration will announce the 2025 Cost of Living Adjustment (COLA) on October 10, with predictions suggesting a 2.5% increase.
- The expected 2.5% COLA would be the smallest increase since 2021, reflecting a slowdown in inflation compared to previous years.
- Experts warn that while the COLA aims to keep pace with inflation, it may not fully cover rising costs in areas like healthcare and housing.
- The COLA adjustment will apply to various benefits, including retirement, survivor benefits, and Social Security Disability Insurance.
- Veterans' benefits will also see a similar increase, as new legislation ties their adjustments to the Social Security COLA.