COLA Increase 2025 Social Security: Key Insights and Predictions

Understanding the Upcoming COLA Increase 2025 Social Security

The roughly 70 million people who receive Social Security payments will soon learn about their 2025 benefit checks. The program's annual cost-of-living adjustment (COLA) will be announced within days. Typically, the Social Security Administration sets the COLA based on the recent inflation rate, ensuring beneficiaries maintain purchasing power amid rising prices.

When Will the 2025 Social Security COLA Be Announced?

Generally, the Social Security Administration announces its annual COLA on the same day the Labor Department releases its September inflation report, which is scheduled for Thursday, Oct. 10.

What Will the COLA Be for Social Security in 2025?

The forecast for the 2025 cost-of-living adjustment is around 2.5%, according to the Senior Citizens League (TSCL). This adjustment would mark the smallest COLA since 2021's 1.3% due to pandemic lows. Seniors received unusually large COLAs of 5.9% and 8.7% in 2022 and 2023, respectively.

Impact of COLA on Social Security Benefits

The average Social Security check for retirees is approximately $1,907 in 2024. A 2.5% COLA increase could raise this amount by about $48 per month, totaling around $1,955 in payments.

VA Benefits and COLA Increase for 2025

This month, Congress enacted a new law linking veterans' benefits to Social Security's cost-of-living increase. Named the Veterans’ Compensation Cost-of-Living Adjustment Act of 2024, this law mandates that the VA increases veterans' benefits by the same inflation adjustment percentage as Social Security payments.