This adjustment will be the smallest since 2021, which saw a COLA of 1.3%. While many retirees may be disappointed at the smaller raise, there's still good news ahead. Read More:

The Cost of Living Adjustment, more commonly known as COLA, increases benefits administered by the SSA on a yearly basis. The COLA is designed to keep Social Security retirement, survivor and disability payments in line with inflation, so that purchasing power is not eroded over time.

Social Security benefits are given a cost of living adjustment each year. The 2025 COLA increase is the smallest since 2021.