Social Security’s COLA is estimated to increase by 2.5% by 2025

A cooling of inflation is likely to lead to a modest adjustment in the cost of living for those receiving welfare benefits.

Currently, it is estimated that Social Security benefits could see a so-called COLA increase of 2.5% in 2025. If true, that would be the smallest cost-of-living adjustment in three years. The COLA increase in 2024 was 3.2%.

The estimate is based on the latest inflation figures for August, released on September 11, as well as the inflation data for July. All that is needed is the next inflation data for September.

The Social Security Administration releases the actual amount for the cost-of-living adjustment each October, once more inflation data is available. The September Consumer Price Index is scheduled to be released on October 10.