Powell explains that the next CPI update will be a key indicator of the 2025 Social Security COLA. “The next CPI report come

There's a reason Social Security benefits are eligible for an annual cost-of-living adjustment (COLA). If benefits were to remain flat from year to year, seniors would lose buying power over time due to inflation.

Technically, the Social Security Administration will apply the 2025 COLA to your December 2024 payment. But since you receive Social Security checks in the month after the month they're due, you won't get your first payment with the COLA until January 2025. The exact date depends on the day of the month you were born, as follows:

The official Social Security COLA announcement for 2025 is coming very soon. We'll tell you when and how much you can expect in your checks next year.

Social Security benefits change each year in line with the COLA, which reflects the inflation of the previous year.

The annual cost of living adjustment (COLA) by the Social Security Administration (SSA) to Social Security payments for 2025 is expected to be 2.5%, the smallest COLA increase in the past three years.

The Social Security Administration has named the date it will announce the 2025 cost of living adjustment. Every year, a cost of living adjustment, or COLA, is issued to help Social Security beneficiaries adjust their budgets to the increased cost of goods and services.