The 2025 Social Security COLA Was Announced: Here’s What Retirees Need to Know

The 2025 Social Security COLA Was Announced: Here’s What Retirees Need to Know

The 2025 Social Security COLA Was Announced: Here’s What Retirees Need to Know Social Security serves as a critical financial lifeline for millions of retirees, providing essential income to cover daily living expenses. With many relying heavily on these benefits, the annual cost-of-living adjustments (COLAs) play a vital role in helping beneficiaries keep up with rising costs. The Social Security Administration’s announcement of a 2.5% COLA for 2025 has garnered mixed reactions. While some view it as a modest increase, others are concerned about its limited impact. Let’s break down what this adjustment means for retirees. A 2.5% COLA: The Smallest Increase in Years At 2.5%, the 2025 COLA is historically modest compared to recent years. Here’s some context: 2024 brought a 3.2% increase. 2023 delivered a record-breaking 8.7% COLA, driven by surging inflation. In prior years, COLAs have occasionally dropped below 2%, and even to 0%. Although a 2.5% increase isn’t the worst in Social Security’s…