Social Security Confirms 2.5% COLA for 2025

The Social Security Administration announced a 2.5% cost-of-living adjustment (COLA) for 2025, increasing monthly benefits for more than 72.5 million Americans by approximately $50. This adjustment follows a 3.2% increase in 2024 and reflects the cooling inflation, which reached 2.4% in September, the lowest in three years. Despite the increase, many recipients, like 82-year-old Sherri Myers, express concerns that the raise is insufficient to keep up with living costs, especially food and healthcare expenses. The COLA aims to help beneficiaries maintain purchasing power, but advocacy groups argue it still falls short of actual inflation impacts experienced by seniors. Notices detailing the adjustments will be sent to recipients in December, with the new payouts beginning in January. The taxable maximum income for Social Security taxes will increase to $176,100 in 2025, impacting wage earners and self-employed individuals alike.