This year, the 2.5% COLA lags behind the current inflation rate of 2.9% (as of January 2025), meaning beneficiaries’ payments fall short of fully keeping pace with rising costs. This year’s ...

In late 2024, inflation was on the rise, with the CPI-W increasing to 2.8% by December. The adjustment didn't reflect this jump because Social Security calculates the COLA based on earlier data.

While the smaller COLA is due to the normalization of annual inflation rates, many beneficiaries are concerned. “Our research shows that 67 percent of seniors depend on Social Security for more ...

Social Security income is protected from inflation by annual ... That would be the smallest COLA in four years but still ...