The cost-of-living adjustment estimate for older adults next year continues to shrink as inflation cools further, according to new calculations.
Based on August’s consumer price index report on Wednesday, Social Security’s cost-of-living-adjustment (COLA) in 2025 is forecast at 2.5%, lower than last month’s 2.6% estimate and below the 2024 increase of 3.2%, said Mary Johnson, an independent Social Security and Medicare policy analyst who tracks and calculates the COLA estimates. A 2.5% COLA would raise an average retiree benefit of $1,870 per month by about $46.80 (rounded to the nearest dime).
The increase will likely be insufficient to help retirees dig out of a financial hole as prices of goods and services that retirees spend most of their money on remain high, Johnson said.
