Social Security Will Only Increase by 2.5% In 2025

The Social Security Administration recently announced that the cost-of-living adjustment (COLA) for 2025 will only be 2.5% for 2025. That is a much lower COLA increase than we have seen in the past few years, with a COLA increase of 3.2% in 2024 and an increase of 8.7% in 2023.  According to the Social Security Administration, the 2.5% increase in 2025 will result, on average, in a $50 per month increase to social security recipients.