Social Security Announces 2025 COLA Increase

The Social Security Administration (SSA) announced a 2.5% cost-of-living adjustment (COLA) for 2025, which will increase average monthly benefits from $1,921 to $1,969. The maximum possible Social Security benefit for retirees in 2024 is nearly $4,900 per month, but few people qualify for this amount due to specific requirements. The House passed the Social Security Fairness Act, which could repeal provisions affecting public sector workers, but awaits Senate approval. Despite the modest COLA, Social Security remains a crucial income source for retirees, though it faces sustainability issues as it relies heavily on current workers' taxes. Beneficiaries must sign up for a 'My Social Security' online account by November 20 to access updated payment amounts. The COLA aims to help retirees cope with inflation, reflecting a recent cooling in inflation rates.