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.

The 2025 Social Security COLA is 2.5%. That's less than the 3.2% beneficiaries got in 2024 and well under the 8.7% they got in 2023. This is due to cooling inflation, which has slowed the rate the cost of goods are going up.

In 2025, 62-year-old retirees could receive up to $2,831 monthly from Social Security, a significant increase from previous years. This boost comes from the 2.5% cost-of-living adjustment (COLA) announced for next year.

Social Security benefits will arguably lose buying power next year because the 2.5% COLA understates inflation.

Social Security is the foundational financial support system for many Americans. According to the bipartisan Economic Innovation Group, "Nationally, Americans received $3.8 trillion in government transfers in 2022,

A new year brings new changes to the Social Security program. While many of these changes are minor, they can still affect the size of your monthly payments. Most retirees will benefit from these adjustments,