The 2025 federal cost-of-living adjustment (COLA) is a scheduled improve in Social Safety and Supplemental Safety Revenue (SSI) advantages that can take impact in January 2025. The COLA is designed to assist beneficiaries maintain tempo with rising inflation and make sure that their advantages preserve their buying energy.
The COLA is calculated primarily based on the Shopper Value Index for City Wage Earners and Clerical Employees (CPI-W), which measures the change in costs for a basket of products and companies bought by city wage earners and clerical employees. If the CPI-W will increase from one yr to the subsequent, the COLA will probably be elevated by the identical proportion. The COLA is capped at 8.7%, which signifies that if the CPI-W will increase by greater than 8.7%, the COLA will solely be elevated by 8.7%.