Delaware residents will see the smallest cost-of-living adjustment to Social Security since 2021.
The Social Security Administration announced Thursday that the COLA for for 2025 will be 2.5%. The increase last year was 3.2%. In 2025, the average person will see their monthly payments increase by $50, from $1,907 to $1,957.
Annual COLA is meant to keep beneficiaries’ purchasing power from being eroded by inflation. However, USA TODAY reported that hasn’t been the case, according to many older Americans. Eighty-three percent of older adults said in August a COLA of less than 3% would be insufficient, an AARP survey of 1,000 adults ages 50 and older says.
Here’s what to know.
What is Social Security?
Social Security provides United States citizens with retirement, disability and survivor benefits, giving citizens financial protection. The money comes from taxes paid by employees, employers and self-employed people.
Social Security replaces a percentage of a worker’s pre-retirement income based on your lifetime earnings. The amount of your average earnings that Social Security retirement benefits replace depends on your earnings and when you choose to start benefits.