Social Security's 2025 cost-of-living adjustment (COLA) took effect in January. Benefits will increase 2.5% this year, the smallest pay bump for seniors since 2021. Indeed, more than half of retired workers surveyed by The Motley Fool in October said the COLA was insufficient.

Social Security (retirement and survivors) recipients will now see a 2.5% increase in their next check and throughout the year. The COLA increase also extends to Supplemental Security Income and Social Security Disability insurance recipients.