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.

Social Security's 2025 cost-of-living adjustment (COLA) took effect in January. Benefits will increase 2.5% this year, the smallest pay bump for seniors since 2021. Indeed, more than half of retired workers surveyed by The Motley Fool in October said the COLA was insufficient.

The first round of Social Security retirement benefits for 2025 will be paid this week. Social Security benefits form the bedrock of retirement income for millions of older Americans. January 2025 marks the first month of boosted benefits for this year due to the Cost of Living Adjustment (COLA),