Meanwhile, you may want to know exactly when to expect your 2.5% Social Security COLA to hit your bank account. Here's what the timing of that raise should look like. When your So

Inflation is particularly noticeable for people on fixed incomes, like many who receive Social Security. To help offset this, Social Security applies a COLA. For 2025, the COLA will be 2.5%, and while I'm sure retirees appreciate any increase in benefits, many aren't jumping for joy at the amount.

Yet here’s the rub: Many economists and social planners believe Social Security COLAs are too generous! (I have explained why in past columns, but don’t have the space to get into that argument today.) That’s why most discussions of long-range reform for Social Security include proposals to reduce cost-of-living increases.

Last month, the Social Security Administration shared some news that millions of seniors have been waiting for -- an official 2025 cost-of-living adjustment, or COLA. Benefits will be rising 2.5% at the start of the new year.

The Social Security Administration has announced changes to the Cost-of-Living Adjustment (COLA) for 2025. The COLA is a critical measure that safeguards against inflation and ensures that the compensation paid to disabled and retired individuals can keep pace with rising costs.

The Social Security Administration has announced a 2.5% cost-of-living (COLA) adjustment to beneficiaries starting in January of 2025 — the smallest increase since 2021. Beneficiaries will receive a notice of their increased monthly payment from the Social Security Administration in December.