A 2.5% cost-of-living adjustment increase will mean an extra $50 a month for most Social Security and SSI recipients.

The 2025 Social Security cost-of-living adjustment (COLA) came in at just 2.5%. That's well under the 3.2% retirees got last year and far less than what many were hoping for. The high inflation over the last few years has made it difficult for retirees to afford their basic expenses,

Broadly speaking, the older you are, the less exposure to the stock market you're supposed to take on. When you need safety and certainty, more reliable investments like interest-bearing bonds and even higher-yielding cash balances are prioritized. And understandably so.

Declining inflation led to the lowest cost-of-living adjustment since 2020, with the 2025 COLA set to rise 2.5%.

The end of the calendar year is a good time to assess your financial situation and make a plan for the new year. And while it can be challenging to find time for number crunching when you're busy making holiday travel plans and wrapping gifts, it's an important thing to do nonetheless.

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.