With a little more than a month before the 2025 COLA kicks in, here's what you should know about the upcoming adjustment.

Last month, the Social Security Administration announced the cost-of-living adjustment for 2025. Beginning in January, beneficiaries will receive a 2.5% raise -- amounting to around $48 per month for the average retiree and roughly $39 per month for the average disabled worker.

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.

Last month, the Social Security Administration revealed that benefits will receive a 2.5% COLA increase in 2025

Last month, the Social Security Administration announced that beneficiaries will receive a 2.5% cost-of-living adjustment (COLA) in 2025. That revelation disappointed many Social Security recipients.

A 2.5% cost-of-living adjustment, Medicare Part B premiums and tax liabilities are key changes to watch for that affect 2025 Social Security benefits.

An important aspect of Social Security benefits is the monthly payouts increase they receive in most years to (somewhat) keep up with inflation. This is called the Social Security cost-of-living adjustment (COLA).

In 2025, the maximum Social Security payment will be increasing from $4,873 per month to a whopping $5,108 per month. To earn this payment, there are three requirements you'll need to meet: work for at least 35 years, delay claiming benefits until age 70, and consistently reach the maximum taxable earnings limit.