Knowledge gaps concerning Social Security can lead to financial mistakes and lost spending power in retirement. So, beneficiaries must stay informed on changes to the program. Read on to learn about three big Social Security changes that will take effect in January 2025. Image source: Getty Images.

Social Security plays a vital role in the lives of millions of Americans. Each year, retirees eagerly await the announcement of the cost-of-living adjustment (COLA) to their benefits. The COLA helps ensure that Social Security payments keep pace with inflation.

Because Social Security benefits are for life, they should be able to keep up with inflation over the decades. While the COLA may sound simple and straightforward, the program is facing some issues that could affect your retirement in 2025 and beyond.

If you're among the millions of Americans who rely on Social Security to make ends meet, then you may be eager to find out what your 2025 cost-of-living adjustment (COLA) will amount to. At the start of 2024, Social Security recipients saw their benefits rise by 3.2%. And you may be wondering if you can expect a similar boost in the new year.

Almost every essential good has risen across the board in recent years, and that has many seniors concerned. Indeed, if the annual cost of living adjustments (COLA) put forward by the SSA can't or don't match the real rising costs seniors face,

As we approach the end of 2024, the Social Security Administration (SSA) is set to conclude its Cost of Living Adjustment (COLA) payments for the year.

The Social Security Administration will announce the 2025 cost-of-living adjustment (COLA) on Oct. 10, 2024. Until then, you can only make your best guess as to what it's going to be. The existing data suggests the COLA will be lower than what program recipients have seen in recent years.