Social Security cost-of-living increase for 2025 could be 2.5% — the lowest since 2021, estimate finds

Social Security beneficiaries have seen significant increases in cost-of-living adjustments in recent years due to high inflation, but next year’s increase may not be as generous. Estimates suggest a 2.5% increase in benefits for 2025. Former President Donald Trump has proposed eliminating taxes on Social Security benefits, which could have consequences for the program’s funding. Medicare Part B premiums are also rising faster than Social Security cost-of-living adjustments, putting a strain on retirees’ budgets. It’s important to monitor these factors as they can impact retirement income.