The Social Security Administration adjusts Social Security benefits annually for its approximately 75 million recipients based on recent inflation data to preserve beneficiaries' purchasing power.
January 01, 2025
high
temporal
Describes the programmatic process by which benefit levels are maintained relative to inflation.
The Social Security cost-of-living adjustment (COLA) is calculated using inflation figures for the third quarter of the year, defined as July through September.
January 01, 2025
high
temporal
Explains the specific measurement period used to determine the annual COLA.
New Social Security cost-of-living adjustments take effect on January 1 of the year following the calculation period.
January 01, 2025
high
temporal
States when awarded COLA increases are applied to benefits.
The Social Security cost-of-living adjustment for 2025 was 2.5%.
January 01, 2025
high
temporal
Historical statistic reporting the percentage increase applied to Social Security benefits in 2025.
Medicare Part B premiums are deducted automatically from beneficiaries' monthly Social Security benefit payments.
high
temporal
Payment mechanism linking Medicare premiums and Social Security benefits