The Social Security Administration will officially announce the 2025 cost-of-living adjustment (COLA) on Oct. 10, 2024. It might seem like an arbitrary date to you, but it's not. That's when the government releases the September figure for the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

It's the final piece of information we need to determine the Social Security COLA. But we have the five other numbers that go into that calculation, and they're already giving us hints about where the 2025 COLA will end up.

How the Social Security Administration will calculate the 2025 COLA
What the 2025 Social Security COLA will look like
The $22,924 Social Security bonus most retirees completely overlook.

The government calculates the COLA by looking at the change in average third-quarter inflation data as indicated by the CPI-W. It sounds more complicated than it is. Basically, it's going to take the numbers from July, August, and September from this year, total them up, divide by three, and then compare this average to the average from last year. The difference will be the 2025 COLA.

We can't say with certainty what the 2025 COLA will look like until we get that final piece of data on Oct. 10, 2024. But the latest projection from The Senior Citizens League puts the COLA around 2.5%. That would add about $48 to the $1,920 average monthly check as of August 2024.

It's probably lower than what most people were hoping to hear. But keep in mind that some people may see larger bumps to their benefit if their checks today are larger than average.

Once we know what the official COLA is, you can add it to your current benefit to get an approximation of your 2025 checks. The Social Security Administration will also send out personalized COLA notices to all beneficiaries starting in early December.

The government will apply the 2025 COLA to your benefit beginning in December. But since you receive checks in the month after the month they're due, you won't notice any difference until you get your January 2025 check.

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after.