Such is the case for 2025. Recently, the Social Security Administration announced that benefits would be rising by 2.5% in the new year. And while that's certainly not the smallest Social Security cost-of-living adjustment (COLA) on record, it pales in comparison to recent COLAs.

Tens of millions of older Americans will see an increase in benefits this January when a new cost-of-living adjustment is added to Social Security payments. The 2.5% raise is intended to help meet higher prices for food,

One of the most important parts of Social Security is the annual cost-of-living adjustment, or COLA. With the price for nearly everything rising over the last few years, the annual raises built into the government program can be a major lifeline for many retirees.