The Social Security cost-of-living adjustment (COLA) is projected to increase by only 2.4% in 2025, marking the lowest annual increase since 2021, according to the Senior Citizens League (SCL).
Each year, the federal government calculates the COLA based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July through September. The latest inflation trend analysis by the Senior Citizens League, an advocacy group for older Americans, indicates that next year’s COLA will likely be set at 2.4%.
This modest increase comes as a disappointment to many seniors, who often depend on fixed incomes. Rising costs and inflation can severely impact retirees, especially when the COLA fails to keep pace with real-life price hikes. According to the Senior Citizens League, the gap between the actual cost of living and the COLA adjustment has caused growing financial stress among seniors.
The largest COLA on record occurred in 1981, when benefits rose by 14.3%. By contrast, there were no increases at all in 2010 and 2011.
BY BRIAN CHOI [choi.inseong@koreadaily.com]
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