The non-partisan advocacy group The Senior Citizens League predicts the 2026 COLA will be 2.1%, based on data from the Bureau of Labor Statistics’ CPI-W, the index used to calculate the annual increase. December’s CPI-W came in at 2.8%. Getty Images

Social Security benefits received a 2.5% cost-of-living adjustment (COLA) in 2025, but for many retirees, this is not enough to keep up with rising prices. Their monthly checks don't go as far as they used to,

For retirees, healthcare expenses are unavoidable and increasingly unaffordable. Fidelity Research says a 65-year-old retiring in 2024 can expect to spend an average of $165,000 on healthcare and medical expenses throughout retirement — a 5% jump over the previous year and more than double 2002’s estimate.

In order to ensure that benefits keep up with inflation, the Social Security Administration (SSA) typically makes a cost of living adjustment (COLA) each year. For 2025, the SSA has delivered a 2.5% COLA -- and the benefit increase appears to be getting mixed reviews from retirees.

Recipients of Social Security received an increase in benefits in 2025, as they do every year. However, new economic data and policies could spell trouble.

Social Security in 2025 is poised for significant updates, impacting the benefits retirees rely on. From adjustments to the full retirement age (FRA) to increases in the cost-of-living adjustment (COLA),

The Social Security cost-of-living adjustment officially goes into effect in December of each year -- so technically speaking, the 2.5% adjustment was the 2024 COLA. However, Social Security benefits are paid one month in arrears, so the December benefit is the monthly payment that is physically received in January.