Social Security beneficiaries have seen higher cost-of-living adjustments in recent years, prompted by record high inflation.
Based on new government inflation data, beneficiaries may see just a 2.5% increase to benefits in 2025, estimates Mary Johnson, an independent Social Security and Medicare analyst.
In 2024, more than 71 million Americans — including Social Security and Supplemental Security Income beneficiaries — saw a 3.2% cost-of-living adjustment, according to the Social Security Administration.
A spike in inflation drove the annual benefit boost even higher in 2023, when there was an 8.7% increase, the highest in four decades.
In 2021, the cost-of-living adjustment was 1.3%.
Persons:
Mary Johnson, —
Organizations:
Social Security, Social Security Administration