The Social Security Administration (SSA) has announced a 2.5% cost-of-living adjustment (COLA) to benefit checks starting in 2025, marking the smallest increase since 2021. This adjustment will affect the 68 million Americans who receive monthly Social Security benefits, with retirees relying heavily on these checks as a major source of income. What is the Social Security COLA? The Social Security COLA is an annual adjustment aimed at helping beneficiaries keep up with inflation. It is calculated based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Over the years, the COLA has fluctuated in response to inflation rates. For instance, post-pandemic inflation led to a higher COLA of 8.7% in 2023. However, inflation has cooled, and the 2025 CO...

In 2024, Social Security beneficiaries will likely see a smaller increase in their payments compared to the significant 8.7% Cost-of-Living Adjustment (COLA) in 2023. With inflation slowing down, the 2024 COLA is expected to be more modest. While this may not meet retirees' expectations, there is a positive aspect. Even a smaller increase helps maintain purchasing power, especially as inflation stabilizes, ensuring retirees can still manage essentials like healthcare and groceries. For more details, check La Grada Online. Understanding COLA’s Role The COLA is a critical adjustment made annually to help Social Security recipients keep pace with inflation. Calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), it reflects changes in the cos...