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But its an imperfect science, particularly as various costs impact each retiree differently.
What Is the Social Security COLA for 2025?
For 2025, the annual Social Security cost-of-living adjustment (COLA) is 2.5%.
That amounts to an increase of $450 per year in this example.
How Does That Compare With the Rate of Inflation?
The inflation measurement most Americans are familiar with is the consumer price index or CPI.
What Costs in Particular Are Much Higher in 2025 Than They Were in Prior Years?
How Will This Affect Your Social Security Budget?
The good news is thatinflationhas plummeted since its rate of year-over-year change peaked at 9.1% in June 2022.
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