Projected Social Security Cola Increase 2025: What to Expect
Projected Social Security Cola Increase 2025
The Social Security cola increase 2025 is projected at 2.5%, marking a significant adjustment for more than 70 million recipients. Based on recent inflation reports, retirees can expect an average monthly bump of $48. This increase is derived from the government's inflation data.
Understanding the Rate of Increase
The 2025 cost-of-living adjustment (COLA) now forecasts a lower increase than the previous month's projection of 2.57%. Price data released indicated a 2.5% rise for the year ending in August, suggesting moderation in inflation. However, these figures have not been officially confirmed as the Social Security Administration will finalize the new COLA in mid-October.
What This Means for Recipients
A 2.5% increase would result in an average monthly benefit of about $1,968. Though this is less than the 3.2% boost seen in 2024, it remains close to the historical average of 2.6% over the past two decades.
- Historical Context: The COLA has varied, with previous rates hitting 0.0% in certain years, contrasting with highs of 8.7% in 2023.
The Social Security Administration’s COLA is based on inflation rates tracked from July to September, using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.