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