How much more will Social Security recipients receive next year? COLA prediction is out [Video]

Social Security recipients will likely receive a substantially lower cost of living adjustment increase next year.

The advocacy group The Senior Citizens League’s latest projections point to a 2.57% increase in 2025, a drop from the 2.66% forecast the month before. Social Security recipients received a 3.2% increase in 2024, significantly lower than 8.7% the year before.

COLAs, designed to prevent benefits from being eroded by inflation, are determined by data from the Consumer Price Index for Urban Wage Earners and Clerical Workers which tracks the average price of a basket of goods. The average CPI-W for the third quarter of the previous year is compared to the third quarter of the current year and, if there is no increase, there is no COLA.

READ MORE: Social Security increase: Here’s the smallest cost-of-living adjustment Social Security ever paid

If there is an increase in CPI-W, Social Security benefits will increase by the same percentage points.

Final figures …