Retirees Will Get a Smaller Social Security Raise in 2025—and That’s OK

Social Security recipients are on track for a smaller cost-of-living adjustment next year.

The cost-of-living adjustment, or COLA, that retirees receive each year is tied to the average inflation data for July, August and September, so the actual increase won’t be clear until October. There was a 2.9% increase in July, the Labor Department reported Wednesday that the August figure rose at an annual rate of 2.5%, although the inflation index the COLA is based on rose 2.4%.