With a little more than a month before the 2025 COLA kicks in, here's what you should know about the upcoming adjustment.

Last month, the Social Security Administration announced the cost-of-living adjustment for 2025. Beginning in January, beneficiaries will receive a 2.5% raise -- amounting to around $48 per month for the average retiree and roughly $39 per month for the average disabled worker.

But when we look back at the data, it becomes clear that a 2.5% Social Security COLA isn't so terrible. In fact, it's a lot more generous than some of the COLAs beneficiaries have seen in the past. In 2024, Social Security benefits rose by 3.2%. The year prior, they increased by 8.7%. And in 2022, a 5.9% COLA came through.

Seniors awaiting bigger Social Security checks next year may be shocked to discover higher Medicare premiums will eat up a chunk of their cost-of-living adjustment.

Last month, the Social Security Administration announced that beneficiaries will receive a 2.5% cost-of-living adjustment (COLA) in 2025. That revelation disappointed many Social Security recipients.

A 2.5% cost-of-living adjustment, Medicare Part B premiums and tax liabilities are key changes to watch for that affect 2025 Social Security benefits.