"2025 Social Security COLA Estimates: Why the Increase Isn't Good News"

The latest estimates project a 2.6% increase in the cost-of-living adjustment (COLA) for Social Security beneficiaries in 2025, reflecting the rise in inflation. However, this may not be good news for recipients as the current inflated prices are eroding the impact of any future increase. Analysts highlight the issue of the time value of money, emphasizing that money received in the future is worth less due to inflation. The final COLA amount for 2025 will be determined based on the average inflation rate during the third quarter, with ongoing fluctuations in estimates due to changing CPI data.