4 Things All Retirees Need to Know About Social Security COLAs

On the off chance you're receiving Social Security retirement benefits but haven't yet heard, beginning in January your monthly payments are going to be a little bit bigger. Last month, the Social Security Administration announced a 2.5% cost-of-living adjustment (or COLA) for 2025's payouts. That's not bad. It's not as big as 2024's 3.2% improvement, but at least inflation has been cooling off of late.Still, the recent news raises a handful of questions among the retirees it impacts the most. Here are a few things you might want to know about these annual cost-of-living adjustments.The annual COLA isn't a number arbitrarily decided by the Social Security Administration. Rather, it's based on the previous year's growth of the United States' Consumer Price Index; you know this change better as "the inflation rate."Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool