Social Security COLAs are tied directly to inflation. Therefore, when one goes down, it indicates that the other is down, too. In other words, a smaller 2025 COLA means inflation has been cooling. If that trend continues, seniors on Social Security could gain buying power in the form of lower prices in stores and in general.

Current estimates suggest a 2.57% COLA increase for 2025, which would add approximately $50 per month to benefits, according to the Detroit Free Press. However, the Seniors League's 2024 Loss of Buying Power study indicates that this increase would fall short of covering rising costs for older adults.

Social Security recipients received a 3.2% adjustment. The average retired worker benefit lands at roughly $1,900 per month, so that amounts to a raise of just over $60 p

The Social Security 2025 COLA forecast was recently revised downward.