2025 Social Security COLA Announcement Set for October

The Social Security Administration (SSA) will announce the 2025 cost-of-living adjustment (COLA) on October 10, with current projections estimating a 2.5% increase, down from the 3.2% increase in 2024. This adjustment is based on third-quarter inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Critics argue that using the CPI-W is not ideal as it doesn't accurately reflect the spending habits of seniors, and some legislators have proposed switching to the CPI-E, which is more tailored to elderly expenses. Retirees have experienced significant COLAs over the past three years due to high inflation, but 2025's increase is expected to be modest. Individual notifications of new benefits will be sent in December, with the first increased checks arriving in January.