Social Security announces a new cost-of-living
Overview
The Social Security Administration’s 3.2% Cost-of-Living Adjustment (COLA)
for 2025 aims to shield beneficiaries from inflation.
Though smaller than recent increases, it helps those for whom Social Security is a
“financial lifeline” maintain purchasing power amid high living costs.
How COLA Works
The adjustment is based on the CPI-W inflation index.
While inflation has cooled, essentials remain expensive, so the increase is meant to
“preserve stability, not provide extra financial comfort.”
Who Benefits
More than 70 million people—including retirees, disabled workers, survivors,
and SSI recipients—will see automatic increases starting January 2025.
Retirees will gain about $50 monthly, disabled workers about $1,438 on average,
and survivors around $1,549.
Limitations
SSI payments will rise to $968 for individuals and $1,452 for couples.
Still, advocates warn healthcare and housing costs may outpace COLA gains.
