Key Social Security Changes and Increases Coming in 2025

The Social Security Administration has announced a 2.5% cost-of-living adjustment (COLA) for 2025, affecting 72.5 million beneficiaries, including those receiving retirement, disability, and Supplemental Security Income. This increase, effective in January, is smaller than the previous two years, reflecting cooling inflation. The adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers. Despite the increase, many seniors express concern that the COLA does not adequately reflect their rising living costs.