SOCIAL SECURITY COST-OF-LIVING ADJUSTMENT MAY BE 2.6% IN 2025, NEW ESTIMATE FINDS

Even as new government inflation data shows inflation subsiding, many retirees are still struggling under the weight of higher costs. Next year's Social Security cost-of-living adjustment, or COLA, may not provide much relief. In 2025, the Social Security COLA may be 2.6%, according to Mary Johnson, an independent Social Security and Medicare policy analyst.

That's down from the 3.2% boost to benefits Americans saw in 2024. It's also substantially lower than the 8.7% COLA Social Security beneficiaries received in 2023, and the 5.9% increase for 2022. The prospective Social Security COLA for 2025 would be the lowest since 2021 but in line with the average cost-of-living adjustments for the past two decades, according to Johnson.

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