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.

Millions of older adults rely heavily on Social Security, and every extra dollar counts. In 2024, Social Security recipients received a 3.2% adjustment. The average retired worker benefit lands at roughly $1,

The Social Security 2025 COLA forecast was recently revised downward.