Federal Reserve announcements on interest rate decisions

Social Security Administration Announces 2.5% Cost-of-Living Adjustment for 2025, Smallest Since 2021

Oct 10, 2024, 04:25 AM

The Social Security Administration has announced a 2.5% cost-of-living adjustment (COLA) for 2025 on October 10, 2024. This increase, which is the smallest since 2021, reflects cooling inflation and will affect the monthly checks of approximately 72.5 million Americans receiving retirement or disability benefits. The adjustment is a decrease from the 3.2% increase in 2024 and follows higher adjustments in recent years due to record inflation. The average recipient will see an additional $561 per year. The Contribution Base has also been increased to $176,100. Despite the increase, experts argue that it will not be sufficient to address the rising costs of housing, food, and healthcare for many older adults.