Key Social Security Changes and 2025 COLA Updates for Retirees

The latest Social Security cost-of-living adjustment (COLA) for 2025 is set at 2.5%, which many Americans find insufficient to keep up with inflation. This modest increase highlights the challenge retirees face in relying on Social Security as a primary income source, as it often falls short of covering living expenses. To better prepare for retirement, individuals are encouraged to develop multiple income streams, such as part-time work, investments, and pensions, rather than depending heavily on Social Security benefits.