KEY TAKEAWAYS Social Security's cost-of-living adjustment (COLA) for 2025 will be announced this month and will go into effect in January.The cost-of-living adjustments happen each year and are designed to ensure benefits align with inflation.

The latest projections from The Senior Citizens League (TSCL) put the 2025 Social Security COLA around 2.5%. This would add approximately $122 per month to the checks of those currently earning the maximum benefit, bringing them to $4,995 per month. That's another $1,464 per year.

Social Security benefits will be adjusted for inflation in 2025. Find out by how much and when you'll see the increase in your check.

The Social Security Administration is expected to announce the COLA for 2025 later this month, and that adjustment will take effect in January of next year.

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The report looked at several Social Security reforms and calculated the financial impact on future retirees. Researchers determined the cost of doing nothing would have the most significant financial consequences.