But when we look back at the data, it becomes clear that a 2.5% Social Security COLA isn't so terrible. In fact, it's a lot more generous than some of the COLAs beneficiaries have seen in the past. In 2024, Social Security benefits rose by 3.2%. The year prior, they increased by 8.7%. And in 2022, a 5.9% COLA came through.

In light of these numbers, it's easy to see why a 2.5% COLA for 2025 seems like a slap in the face. But you should also know that these recent COLAs were fueled by a period of ram

The next round of November's Social Security payments are headed out to recipients in a few short days. If you're expecting a check this coming week, we'll tell you when you'll get it.

Last month, annual inflation rose by 2.6%, which means that it's already outpacing the 2.5% COLA seniors are in line for in 2025. If that trend continues, Social Security recipients could end up losing out on tons of buying power.

I have been saving up some emails from readers who want to know how other government benefits might affect their eligibility for Social Security, or vice versa. In other words,

Social Security benefits will arguably lose buying power next year because the 2.5% COLA understates inflation.