The Social Security Administration (SSA) is set to announce the 2025 Cost-of-Living Adjustment (COLA) on October 10, with current estimates pointing to a modest 2.5% increase. This would be the smallest COLA since 2021, reflecting recent lower inflation rates. Despite this, the purchasing power of Social Security benefits has been declining, with The Senior Citizens League noting that benefits have lagged behind inflation by 20% over the past decade. Retirees are particularly concerned as rising costs, including potential increases in Medicare Part B premiums, could offset the modest COLA. The method for calculating COLA, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), has been criticized for not adequately capturing the expenses seniors face, leading to calls for a revised formula. Overall, while any increase is welcomed, many beneficiaries might find the adjustment insufficient to cover their growing financial needs.