Social Security Announces Modest Hike for 2025

The Social Security Administration unveiled on Thursday a cost-of-living adjustment (COLA) of 2.5% for 2025, the smallest increase in four years. The adjustment, which impacts tens of millions of Americans, which on average is only a rise of about $50 per month in retirement benefits starting in January.

Though inflation has begun to cool, the increase aims to help beneficiaries keep up with rising costs. However, the 2.5% boost is modest compared to recent years, signaling that while prices may not be skyrocketing as they once were, many seniors and recipients of Supplemental Security Income (SSI) may still struggle to balance their expenses in the current economic climate.

This adjustment comes after several years of more substantial COLA increases, reflecting a shift towards more moderate economic growth and stabilization in inflation trends.