Social Security payments receive annual cost-of-living adjustments (COLAs) to protect the purchasing power of benefits from inflation. Americans have ranked inflation as their most pressing financial concern for three consecutive years,

A 2.5% cost-of-living adjustment increase will mean an extra $50 a month for most Social Security and SSI recipients.

The 2025 Social Security cost-of-living adjustment (COLA) came in at just 2.5%. That's well under the 3.2% retirees got last year and far less than what many were hoping for. The high inflation over the last few years has made it difficult for retirees to afford their basic expenses, and many fear this will only get worse in 2025.