This is exactly when the 2025 Social Security COLA will be announced and what it means for retirees

Millions of seniors today rely on their monthly Social Security benefits to make ends meet. For someone who doesn’t have much savings to fall back on, a generous Social Security cost-of-living adjustment (COLA) could make the difference between managing expenses in the new year or falling behind.

As of today, we have no official word on a 2025 Social Security COLA. That information won’t be released for several weeks, but it’s important to know when the announcement is scheduled so you can plan accordingly.

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Get ready for a big announcement in October

The Social Security Administration (SSA) will announce the official 2025 COLA on October 10. The reason seniors have to wait so long is because COLAs are based on third-quarter inflation data from the Consumer Price Index for Urban Wage and Service Workers (CPI-W).

We already have CPI-W readings for July and August. But the September ones won’t be available until October 10 — hence the delay.

Next year’s Cola may disappoint — but it’s not all bad news

Initial estimates call for a 2.5% Social Security COLA in 2025. That’s considerably lower than the 3.2% elderly COLA received in early 2024.

However, it’s worth noting that a Social Security COLA of 2.5% looks clear — it’s a sign of cooling inflation. Even though Social Security benefits may not increase as much as seniors want in the new year, these recipients could enjoy a world of relief in the form of less expensive food, utility and other bills. All in all, things could even out pretty well.

That said, even once an official Social Security COLA announcement comes out, seniors won’t be able to calculate a personal monthly benefit increase until Medicare announces what the standard Part B premium will be in 2025. Seniors who are enrolled in Social Security and Medicare at the same time, have their Part B premiums deducted from their monthly benefits. A big increase in Part B could eat up any COLA that comes down.

Be prepared to make changes

A lower Social Security COLA in 2025 may not hurt seniors as much as expected, thanks to cooling inflation. But it’s not a bad idea to make changes while waiting for a more modest raise.

If you’ve been struggling to meet your living costs, you may want to consider working in some capacity or cutting back on expenses. If you’re going to take a part-time job, you may not be able to get rid of a car. But if you prefer not to work, you may be able to get by without a vehicle, which can save you a fair amount of money and stretch your 2025 COLA even further.

How to find out about next year’s COLA

The SSA news section might be a good place to visit on October 10th. At that time, information about next year’s COLA as well as additional aspects of the program should be available. These include the Social Security earnings test limit, the wage cap for Social Security taxes, and the program’s maximum monthly benefit.