Social Security Recipients Getting a Smaller Raise

Social Security recipients who might have been used to getting bigger-than-usual increases in recent years will have to make do with a smaller bump in 2025. The Social Security Administration said Thursday that the checks are going up 2.5% at the start of the year, reports CNBC.

• For the average retiree receiving $1,907 a month, that translates to a raise of $48 monthly, per the Washington Post. Those who get the maximum of $4,873 a month will see an extra $122 because of the cost of living adjustment, or COLA.

• The 2025 raise is a decrease from 3.2% in 2024, the record-high 8.7% in 2023, and 5.9% in 2022. The raises are pegged to inflation. Next year's is the lowest increase since a 1.3% boost in 2021.
• The AP notes that all of the above comes amid a looming shortfall of the program's trust fund, which is on track to be depleted in 2035 unless things change. Read the full story.