Social Security’s big 2025 COLA announcement is just 10 days away. Here’s what to expect.

If you’re among the millions of Americans who rely on Social Security to make ends meet, then you may be anxious to find out what the 2025 cost-of-living adjustment (COLA) will amount to.In early 2024, Social Security recipients saw their benefits increase by 3.2%. And you may be wondering if you can expect a similar boost in the new year.

The Social Security Administration (SSA) will not be able to make an official COLA announcement until October 10th. The reason is that Social Security COLAs are calculated based on third quarter inflation data.

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Even though the third quarter of the year just ended, it takes time for the Bureau of Labor Statistics to release an official reading from the Consumer Price Index for Urban Wage and Service Workers, which is the index on which the security COLA is based social. And SSA needs this data to calculate a 2025 COLA.

That said, you don’t necessarily have to wait until October 10 to find out everything you need to know about the 2025 Social Security COLA. Here’s some information that’s already available.

An initial estimate assumes a smaller increase than in 2024

Even though we still lack some key economic data needed to officially calculate a 2025 COLA, experts have a working estimate based on the information they already have. And you should know that the current projection for 2025 is a Social Security COLA of 2.5%. This is a considerable decrease compared to the 3.2% COLA that arrived at the beginning of 2024.

However, because Social Security COLAs are tied to inflation, a smaller increase in benefits is not bad news. As the pace of inflation has slowed, consumers of all ages are benefiting from less drastic price increases. So what you lose in a lower COLA, you might gain in relief at the pump, at the supermarket, and just about everywhere else.

You may or may not get COLA 2025 in full

Once an official Social Security COLA is announced, you can look at your monthly benefit and apply that percentage to see what kind of increase you can anticipate. But don’t forget to factor in an increase in Medicare Part B when you run these numbers.

If you’re enrolled in Social Security and Medicare at the same time, your Part B premiums are automatically deducted from your monthly Social Security checks. And if the cost of Part B increases dramatically in 2025, it will result in a lower COLA for you.

A big day for Social Security

You may plan to check the SSA website for news of a COLA announcement on October 10. But you should know that a COLA 2025 won’t be the only news to be released that day.

SSA will also update key program information for 2025, including:

• A new earnings-tested limit that applies to people who work and collect Social Security at the same time
• A new salary cap, which determines how much income is taxed for social security purposes
• A new maximum monthly benefit
• A new earnings requirement to receive the work credits needed to qualify for Social Security later in life

So even if you’re not terribly concerned about what the 2025 Social Security COLA will mean, it’s still worth tuning in on October 10 to learn about these other important changes.