Why Retirees Should Not Count On a Big COLA Next Year

As inflation continues to subside, experts are suggesting retirees should not count on a large Social Security cost-of-living adjustment (COLA) for 2025. Although it’s still very early in the year, USA Today reports that analysts forecast a 1.75 percent COLA, based on data from January’s consumer price index (CPI) report.

A 1.75 percent COLA is lower than this year’s 3.2 percent adjustment and a huge difference from 2023’s 8.7 percent COLA, which was the largest increase in 40 years. The Social Security Administration will reveal its 2025 COLA in October.

The Seniors Trust is committed to improving the financial well-being of America’s retirees through passage of The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA) and increased minimum benefits.