What Is The Cost Of Living Increase For 2025. The annual cost of living adjustment (cola) rates are based on the consumer price index, a measure of the average change in prices for the nation’s goods and services. The 2025 cost of living adjustment (cola) was announced last week, and most federal workers will again receive a reduced cola due to a flawed rule in the current law.

Social security benefits and supplemental security income (ssi) payments for more than 72.5 million americans will increase by 2.5% in 2025. A cola increase of 2.5% will raise the average monthly benefit by about $48 a month.