2025 Social Security COLA Forecast: Surprising Increase Expected

After a historic 8.7% cost-of-living adjustment (COLA) for Social Security benefits in 2023, retirees faced financial hardship, with 58% expecting significant spending cuts due to rising prices. Despite hopes for a larger benefit increase in 2025, projections show Social Security's COLA shrinking to 2.6%, falling behind inflation. The discrepancy in COLA calculations based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) may be a factor. Retired workers are advised to budget meticulously, consider additional income sources, and prepare for potential financial challenges.