You read that right: Social Security benefits are shrinking next year, even though you'll receive slightly more money in your monthly check. A relatively low increase in Social Security benefits in 2025, coupled with a higher percentage increase in Medicare premiums, continues to erode the purchasing power of Social Security retirement benefits.
If you get Social Security, you’re receiving a cost-of-living adjustment (COLA) of 2.5% for 2025, lower than 2024’s COLA of 3.2% and the 40-year record of 8.7% in 2023.
