Small Bump in Social Security Benefits for 2025

The Social Security Administration let everyone know on Thursday that there will be a 2.5% increase in their benefits for 2025. This is the smallest increase since 2021, when it was just 1.3%. This change comes after a period where inflation was high and beneficiaries saw bigger boosts in their payments. In 2023 and 2022, the increases were 8.7% and 5.9% respectively -- the highest in four decades.

The cost-of-living adjustment (COLA) is a measure that helps benefits keep up with the rising costs of living. With inflation slowing down, the COLA for 2025 is closer to the average increase of about 2.6% over the past 20 years. Experts from a senior advocacy group called the Senior Citizens League shared that this is a normal pace of adjustment for Social Security benefits. It's important to remember that these adjustments are based on the Consumer Price Index, which tracks changes in the prices of goods and services. Stay tuned for more updates as this story develops.

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