When the Social Security Administration (SSA) announced last October that benefits would only be rising by 2.5% in 2025, a lot of people were disappointed. And that’s understandable since that 2.5% cost-of-living adjustment, or COLA, is the smallest raise to arrive in years.
Now the reality is that a smaller COLA is indicative of cooling inflation. So in reality, seniors on Social Security should be breaking even in that regard. In other words, their benefits aren’t up so much this year, but living costs should be moderating.
