Will Social Security's COLA increase in 2025? Forecast and calculator

Every year, millions of Americans who rely on Social Security benefits wait for news about the annual cost-of-living adjustment and its impact on benefits.

Social Security provides benefits to more than 71 million Americans, including retirees, veterans and dependents. These benefits are initially calculated based on a worker's earnings history but would lose value over time without adjustments.

To address this problem, a law was passed in 1973 that provides for annual cost-of-living adjustments starting in 1975 to help benefit recipients keep pace with the rising costs of daily living.

The Social Security adjustment varies from year to year. The cost-of-living adjustment for 2024 was 3.2%. Here's everything you need to know about the estimated cost-of-living adjustment for 2025 and how it could affect Social Security payments.