Social Security Announces 2.5% COLA for 2025

The Social Security Administration announced a 2.5% cost-of-living adjustment (COLA) for 2025, affecting over 72.5 million Americans receiving Social Security and Supplemental Security Income (SSI). This increase, averaging about $50 more per month for retirees, is the lowest since 2021 and falls below the historical average COLA of 2.6%. Many seniors express frustration as this adjustment does not match the rising living costs, especially in housing, healthcare, and essentials, despite cooling inflation. Former President Trump has pledged to eliminate taxes on Social Security benefits if reelected, aiming to alleviate the financial strain on seniors. Additionally, the British government faces criticism over potential increases in employer national insurance contributions, which could impact job markets in cost-sensitive sectors like hospitality.