The Social Security cost-of-living adjustment, or COLA, added 2.5% to Social Security benefits in 2025. However, as Certified Financial Planner® Matt Frankel explains in this video, this might not be quite enough to help American retirees keep up with the rising cost of the goods and services they need the most.

The Social Security cost-of-living adjustment for 2025 is the lowest since the post-Covid inflation spike. Yet retirees still face high prices.

The looming insolvency of Social Security trust funds by 2033 could lead to significant benefit reductions, impacting millions of retirees.

Tens of millions of Americans rely on Social Security benefits for a substantial portion of their retirement income. Not only is Social Security a valuable source of retirement income, with the average retired worker receiving about $1,975 per month, but it is also the only inflation-protected source of income many retirees have.