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.

The first piece of good news is that beneficiaries will see a 2.5% bump in benefits beginning in January, thanks to the cost-of-living adjustment (COLA). The average retiree collects just over $1,900 per month in benefits, which amounts to a raise of roughly $50 per month.

Your Social Security statement estimates your future retirement benefits based on current earnings. Working over 35 years and delaying benefits past age 62 can increase your monthly payments.

Social Security has been in the news a lot given the program's financial shakiness and the potential for benefit cuts. And whenever there's an election, Social Security tends to be a big issue for politicians to discuss.

Social Security beneficiaries will soon experience a welcome change, with benefits slated to climb due to a cost-of-living adjustment. Recipients will see a 2.5% cost-of-living adjustment in 2025, which is notably less than the 3.