Social Security 2025: COLA Increase Boosts Benefits for Retirees and SSDI

The Social Security Administration announced a 2.5% cost-of-living adjustment (COLA) for 2025, which is the smallest increase in years compared to the 3.2% in 2024 and 8.7% in 2023. This modest raise is partly offset by a $10.30 increase in Medicare Part B premiums, reducing the net benefit for many retirees. However, the smaller COLA indicates slowing inflation, suggesting that while the increase is modest, it may maintain retirees' purchasing power if inflation continues to cool.