The Social Security Administration on Thursday announced that the cost-of-living adjustment will be 2.5% in 2025.
When that increase goes into effect, it will be the lowest adjustment to benefits that beneficiaries have seen since 2021, when the cost-of-living adjustment, or COLA, was 1.3%.
The Social Security cost-of-living adjustment was put in place to help benefits keep pace with inflation.
More from Personal Finance:Social Security Administration announces 2.5% COLA for 2025House may force vote on bill affecting pensioners' Social Security benefits72% of Americans worry Social Security will run out in their lifetimeAs government inflation data shows the pace of inflation has subsided, the size of the annual increase to benefits has come down.
The 2025 adjustment is not the lowest the Social Security COLA has been.
Persons:
Charles Blahous, George Mason University's, Social Security COLA
Organizations:
Social Security Administration, Social Security, Urban, Clerical Workers, CPI, Finance