The cost-of-living adjustment (COLA) applied to Social Security payments in any given year is based on CPI-W inflation from the third quarter of the previous year. In that sense, COLAs are a reimbursement mechanism to compensate retirees for the buying power benefits lost in the previous year.

Social Security beneficiaries may face taxes if they have additional income sources or due to the COLA increase. Here's how to determine if you're affected.

When you are on  Social Security, you can expect your retirement benefits to increase during most years. That’s because Cost of Living Adjustments (COLAs) typically happen automatically from year to year.

Social Security’s cost-of-living adjustment is expected to shrink in 2026 and could be the lowest increase seen in a decade.

The average Social Security payment will rise by more than $50 per month starting in January, thanks to the federal government’s 3.2% annual cost-of-living adjustment, or COLA. A 3.2% increase in the average Social Security check—about $1,

The Social Security cost-of-living adjustment, or COLA, for 2025 is a 2.5% increase. That means the monthly benefits checks for more than 72.5 million Americans will see their lowest annual bump in four years. While the smaller COLA is due to the normalization of annual inflation rates, many beneficiaries are concerned.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. from 24/7 Wall St. Social Security benefits are rising 2.

Are you a retiree who would also be considered part of the baby boomer generation? If so, you might be concerned about the 2025 Social Security change to the cost of living adjustment -- or COLA,