But when we look back at the data, it becomes clear that a 2.5% Social Security COLA isn't so terrible. In fact, it's a lot more generous than some of the COLAs beneficiaries have seen in the past. In 2024, Social Security benefits rose by 3.2%. The year prior, they increased by 8.7%. And in 2022, a 5.9% COLA came through.

The 2025 Social Security COLA is 2.5%. That's less than the 3.2% beneficiaries got in 2024 and well under the 8.7% they got in 2023. This is due to cooling inflation, which has slowed the rate the cost of goods are going up.

If you're retired or will be retiring soon, Social Security will likely play a role in your financial future. More than 40% of baby boomers say their benefits will be their primary source of income in retirement,

Meanwhile, you may want to know exactly when to expect your 2.5% Social Security COLA to hit your bank account. Here's what the timing of that raise should look like. When your So