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

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.

Due to how the Social Security Administration schedules payments to beneficiaries, some will receive theirs with the 2025 COLA increase in December.

Seniors awaiting bigger Social Security checks next year may be shocked to discover higher Medicare premiums will eat up a chunk of their cost-of-living 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.

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 Social Security cost of living increase offers retirees options such as managing costs, saving or enjoying small splurges.

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