How much will Social Security benefits increase? See COLA calculator

Social Security provides benefits to over 71 million Americans, including retirees, veterans, and dependents. Benefits are initially calculated based on a worker's earnings records. However, to prevent these payments from losing value over time, annual cost-of-living adjustments (COLA) were created by law in 1973 and took effect in 1975. The COLA varies each year. For 2024, Social Security's COLA was 3.2%.

Estimated COLA for 2025

Current estimates, according to the Detroit Free Press, call for a 2.57% COLA increase in 2025, which would increase benefits by about $50 per month. However, the Seniors League's “2024 Loss of Buying Power” study shows that this increase would not be enough to cover the rising costs for older adults. The study estimates that retirees would need an additional $370 per month to maintain the same purchasing power as in 2010. This estimate does not take into account potential increases in Medicare Part B premiums.