With a little more than a month before the 2025 COLA kicks in, here's what you should know about the upcoming adjustment.

Last month, the Social Security Administration announced that beneficiaries will receive a 2.5% cost-of-living adjustment (COLA) in 2025. That revelation disappointed many Social Security recipients. In fact, a recent survey conducted by The Motley Fool found that 54% of retired workers believe the 2025 COLA is insufficient.

The increase in cost of the Medicare Part B premium outpaces the COLA that will be applied to Social Security benefits in 2025. How this will impact your pa

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.

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.

As we head into 2025, you can expect a few changes on the horizon for the Social Security program. For the millions of older adults who rely on Social Security to survive, every dollar counts. Most of the changes set to take place will positively affect your bottom line,

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

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.