Social Security recipients could see the smallest COLA increase since 2021. Here's what to expect.

Each year, the Social Security Administration adjusts its benefits to account for inflation, providing an annual cost-of-living increase that's meant to offset rising prices. This year, the program's 67 million recipients may see their smallest boost since 2021. 

The 2025 cost-of-living adjustment is projected to come in around 2.63%, the Senior Citizens League, an advocacy group for older Americans, said on Thursday. That figure is based on recent inflation data, with consumer prices in June rising 3%, the smallest increase since June 2023 and less than the 3.1% economists were forecasting. 

If enacted, a 2.63% increase would represent a monthly payment increase of about $50, based on the current average monthly benefit of $1,907.