All Social Security beneficiaries are getting a 2.5% cost-of-living adjustment (COLA) next year -- or at least they are on paper. This will increase monthly benefit amounts for all recipients, including those claiming spousal Social Security.

The Social Security Administration (SSA) is set to implement a 2.5% Cost of Living Adjustment (COLA) in 2025, impacting millions of beneficiaries. This adjustment aims to align payments with inflation,

Social Security benefits and SSI payments will increase in 2025, helping tens of millions of people keep up with expenses even as inflation has started to cool.'

Here's when 2025's Social Security Cost of Living Adjustment increases will go into effect. The increase is the agency's lowest in years.

A 2.5% cost-of-living adjustment increase will mean an extra $50 a month for most Social Security and SSI recipients.

Most readers probably know Social Security payments receive annual cost-of-living adjustments (COLA) designed to protect the buying power of benefits from inflation. For instance, beneficiaries will get a 2.5% COLA in 2025, but there are other important changes coming to Social Security next year.

Over the last decade, the cost-of-living adjustment (COLA) increase has averaged about 2.6%. The COLA was 3.2% in 2024. Another significant change in January will be an increase in taxable wages. The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $176,100, up from $168,600.

The Social Security Administration has announced of a 2.5% cost-of-living adjustment (COLA) for 2025 -- that's lower than the 3.2% increase in 2024 and 8.7% increase in 2023. The smaller COLA

For the millions of older Americans who get most of their monthly income from Social Security, annual COLAs, or cost-of-living adjustments, are a big deal. COLAs are designed to boost benefits in line with inflation so that seniors don't lose out on buying power from one year to the next.