United States Social Security (SSA) sent a key message to millions of people. A crucial change will soon arrive that will affect millions of American citizens.
The Cost of Living Adjustment, or COLA, determines how much more beneficiaries will receive next year. SSA has explained that this is calculated using Consumer Price Index (CPI-W) data from the third quarter of the year. This allows benefits to be updated to offset inflation.
All America is watching SSA: COLA update
The official announcement of the COLA adjustment for 2025 will be made in a couple of months. That date is key, because that's when the percentage that will impact next year's payments is confirmed. Although this technical notice has already occurred, SSA reminded everyone of it as an annual reference point, and SSA's message in October precedes the next benefits update.
For millions of Social Security users, COLA is the mechanism that adjusts monthly payments so they don't lose purchasing power against inflation. Without this update, real income could decrease and especially affect retirees and people with disabilities.
The forecast for October 2025, based on recent data, points to a 2.7% adjustment, a bit higher than the 2024 COLA (which was 2.5%). If confirmed, this would mean about $54 more per month, that is, about $648 more per year for those who receive about $2,000 per month.
For these reasons, this Social Security notice is vital
Millions of Americans need to know the real impact on benefits. That percentage translates directly into more income for retirees, people with disabilities, or dependents who receive SSI or SSDI.
In addition, financial planning is vital; knowing that there will be a confirmation of the new COLA in October allows many to adjust budgets, savings, and expenses. In December, each beneficiary receives a personalized notification about their new amount. This arrives by mail or appears in their my Social Security account.
This SSA message not only communicates COLA, but also marks the start of the entire chain: from the individual notification in December to the new adjusted payment in January. For those who receive benefits, that notice in October is the first step in planning the next financial year.