The cost-of-living adjustment (COLA) applied to Social Security payments in any given year is based on CPI-W inflation from the third quarter of the previous year. In that sense, COLAs are a reimbursement mechanism to compensate retirees for the buying power benefits lost in the previous year.

Social Security beneficiaries may face taxes if they have additional income sources or due to the COLA increase. Here's how to determine if you're affected.

When you are on  Social Security, you can expect your retirement benefits to increase during most years. That’s because Cost of Living Adjustments (COLAs) typically happen automatically from year to year.

Social Security’s cost-of-living adjustment is expected to shrink in 2026 and could be the lowest increase seen in a decade.

Social Security cost-of-living adjustment, or COLA, went into effect recently and was reflected on the payments received in January. Each year, Social Security benefits are adjusted to keep up with inflation (if there is any),

Here’s the average Social Security check for more than 68 million Americans in 2025 — how do you compare? More than 68 million Americans receive a Social Security benefit. Of those beneficiaries, 53,503,000 are aged 65 or older and 51,687,000 are retired workers.

The average Social Security payment will rise by more than $50 per month starting in January, thanks to the federal government’s 3.2% annual cost-of-living adjustment, or COLA. A 3.2% increase in the average Social Security check—about $1,

The Social Security cost-of-living adjustment, or COLA, for 2025 is a 2.5% increase. That means the monthly benefits checks for more than 72.5 million Americans will see their lowest annual bump in four years. While the smaller COLA is due to the normalization of annual inflation rates, many beneficiaries are concerned.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. from 24/7 Wall St. Social Security benefits are rising 2.