Social Security's 2025 Cost-of-Living Adjustment (COLA) Forecast Is Climbing, But Seniors Aren't Going to Be Happy

The 2025 forecast for Social Security's cost-of-living adjustment (COLA) is set to increase to 2.6%, which is the average over the past two decades. This adjustment, determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), aims to match inflation and maintain the purchasing power of Social Security benefits. Despite this increase, seniors might still find the adjustment insufficient due to high shelter inflation, which disproportionately affects their expenses. The rising COLA, therefore, may not fully offset the increased living costs, leading to potential dissatisfaction among seniors.