In 2025, retirees are likely to receive a smaller cost-of-living adjustment (COLA) compared to recent years. The official announcement will come in October, but early estimates suggest a COLA around 2.57%, lower than the increases of 3.2% in 2024, 8.7% in 2023, and 5.9% in 2022. The adjustment is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year to the current year. Despite uncertainties until October, current trends indicate a modest increase for retirees' benefits in 2025.

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