The cost-of-living adjustment, which affects around 72.5 million Americans in 2025, aims to ensure that inflation does not erode the purchasing power of Social Security benefits.
Introduced in 1975, the first cost-of-living adjustment allowed Senior citizens to maintain their purchasing power in response to inflation, making it a crucial safeguard for beneficiaries.
The 2.5% increase from 2024 to 2025 is a slight decrease from the previous year's 3.2%, providing an extra $48 monthly to Social Security recipients.
While annual increases are meant to be predictable, it’s important to note that there have been exceptions—three years without any adjustment, impacting seniors' buying power.
Collection
[
|
...
]