What to know about this year’s Social Security cost-of-living adjustment

Associated Press

NEW YORK (AP) — Tens of millions of older Americans will see a 2.5% increase in benefits this January when a new cost-of-living adjustment is added to Social Security payments. The average recipient will see an increase of about $50 per month. Social Security recipients received a 3.2% increase in their benefits in 2024. The smaller increase for 2025 is because inflation is slowing. That means prices aren’t increasing as fast as they were at the height of the COVID pandemic