The Cost of living adjustment is an annual increase designed to prevent social security Beneficiaries face a reduction in purchasing power due to inflation. Social Security is a group of federal programs designed to help Americans enjoy their retirement and meet basic needs in the event of disability, financial instability, or unexpected tragedies such as the death of a spouse or breadwinner. Each program must provide enough funding to cover these costs, but because the economy is constantly changing, adjustments are needed to maintain beneficiaries’ purchasing power and changing needs. If you’re currently eligible for Old Age, Survivors, and Disability Insurance (RSDI) or the Supplemental Income Security (SSI) program, learn more about how much your Social Security checks will increase here.

What impact does the cost of living adjustment have on Social Security checks?

The adjustment to the cost of living is based on the percentage increase in Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of last year to the third quarter of this year. Also, the CPI-W is calculated by the Bureau of Labor Statistics and is the official measure for determining how much Social Security checks will increase each year. So it’s not necessarily a cause for concern that next year’s expected COLA is lower than this year’s 3.2% cost-of-living adjustment. The payments Social Security recipients receive under the current cost-of-living adjustment will increase by $50 on average.

COLAs are not intended to provide financial support to seniors, nor are they traditional wage increases. Rather, their purpose is to protect the purchasing power of welfare recipients from inflation-related cost-of-living increases. Rather than improving quality of life, the cost-of-living adjustment acts as a safety net to ensure that seniors can continue to meet their obligations despite rising prices. According to the Senior League (TSCL)a nonprofit that advocates for seniors’ rights, the next increase could be around 2.5%, up from last month’s prediction of 2.63%. Although the official increase won’t be announced until the second week of October, beneficiaries should know that their Social Security checks will increase as follows when the 2.5% cost-of-living adjustment goes into effect:

Survivor benefits	Social security audits	2.5% COLA increase	Additional income
Average	$1,505	$1,543	$38
person	1,773 USD	1,817 USD	$44
2 children	3,653 USD	$3,744	91 $

Disability benefits	Social security audits	2.5% COLA increase	Additional income
Average	1,537 USD	1,575 USD	$38
Blind recipients	$2,590	$2,655	65$
Maximum payment	3,822 USD	3,918 USD	96 $

Why benefit recipients should not fear a smaller increase in the cost of living?

Although many beneficiaries, especially retirees, have expressed concerns about the upcoming COLA increase for 2025. Receiving a lower Cost of Living Adjustment (COLA) A higher than expected amount is not always a bad thing, as it may indicate that inflation is falling. So if inflation continues to fall, recipients will have enough money to cover their expenses as costs fall and Americans’ purchasing power increases again. However, it is important to stay up to date on Social Security and COLA updates, as the official percentage could still change in the coming weeks.

Please note that for more information about your Social Security checks, please refer to your My social security accountwhere you can download financial statements, apply for a new Social Security card, and even complete other Social Security-related processes. Also, remember that if your new benefits do not arrive on the scheduled date, you should wait at least three mail days before contacting the Social Security Administration’s customer service department.