For instance, let's hypothetically say the collective price for a large basket of goods and services regularly purchased by retirees increases in price by 3% from one year to the

When you are on  Social Security, you can expect your retirement benefits to increase during most years. That’s because Cost of Living Adjustments (COLAs) typically happen automatically from year to year.

Every year, the Social Security Administration, or SSA, examines inflation data and adjusts Social Security benefits accordingly. In short, the annual cost-of-living adjustment, or COLA, is designed to help retirees keep up with the rising cost of goods and services.

Social Security’s cost-of-living adjustment (COLA) mechanism, designed to safeguard the buying power of benefits against inflation, faces challenges as inflation trends upward. The COLA for 2025, based on inflation data from the third quarter of 2024,