Retirees Will Get a Smaller Social Security Raise in 2025—and That’s OK

The cost-of-living adjustment, or COLA, that retirees receive each year is tied to the average inflation data for July, August and September, so the actual increase won’t be clear until October. There was a 2.9% increase in July, the Labor Department reported Wednesday that the August figure rose at an annual rate of 2.5%, although the inflation index the COLA is based on rose 2.4%. As of now, the Senior Citizens League, which advocates to protect Social Security and Medicare, is forecasting a 2.5% COLA in 2025 for the nation’s 68 million Social Security recipients.