2025 COLA Estimates

In 2024, cost-of-living adjustments for Social Security increased by 3.2%. Current estimates predict that it could be similar for 2025. Here’s what you need to know:

What Is COLA?

COLA, or cost-of-living adjustment, is a Social Security benefit that ensures SSI and Social Security income do not lose purchasing power over time. It is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), and it only exists if there has been an increase in the CPI-W. Therefore, if there has been no increase or inflation during the current year, there will be no COLA for the upcoming year.

What has Changed?

Because the COLA is based on inflation, predictions as to what it might be for the coming year are never stable. According to Seattle King 5 News, experts predict a similar, if not slightly lower, COLA for 2025, predicting somewhere between 2.6% and 3.2%.

What Does This Mean for My Benefits?

The 3.2% COLA for 2024 resulted in a roughly $50 monthly benefit increase. While it is impossible to say for certain so early in the year, the COLA for 2025 may add another $50 or so onto Social Security and SSI benefits.