Social Security recipients will see a 2.5% cost-of-living adjustment (COLA) increase in their payments starting in 2025, which translates to an approximate increase of $48 per month. This adjustment will raise the average monthly check from $1,920 to $1,968.
The Bureau of Labor Statistics reported a consumer price index inflation rate of 2.4% in September, and the Social Security Administration bases the annual COLA on consumer price growth from July to September. During this period, prices rose 2.9% in July and 2.6% in August.
Advocates argue that the current COLA calculation does not adequately reflect the spending patterns of seniors, who often face higher costs for essentials like food and housing. Mary Johnson, an independent analyst, noted that despite a drop in the overall inflation rate, prices for these essential items remain high, complicating the financial situation for many Social Security recipients.
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