The Latest 2025 Social Security Cost-of-Living Adjustment (COLA) Forecast Has Some Great News for Retirees
What percentage of seniors rely on Social Security as a major income?
In a Gallup poll, 60% of seniors said Social Security is a major source of income, the highest level in over a decade. Another 28% said it's at least a minor source of income in retirement. This means a significant portion of seniors rely on Social Security to make ends meet.
How is the annual COLA for Social Security calculated?
The annual COLA for Social Security is calculated by comparing the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the third quarter of the current year to the same period from the previous year1. If there is an increase, it is rounded to the nearest tenth of one percent and becomes the COLA for the following year. If there is no increase or if the rounded increase is zero, there is no COLA for that year.
What is the updated COLA forecast by The Senior Citizens League?
The Senior Citizens League updated its forecast for the 2025 Social Security Cost-of-Living Adjustment (COLA) to 2.63%, up from 2.57% last month. The forecast is still lower than the 3.2% COLA received in 2023. A lower COLA may result in an increase in the buying power of Social Security benefits for retirees.