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COLA Watch 2025

Maurie Backman notes the current 2.63% COLA estimate for the cost of living adjustment (COLA) 2025 is higher than previous ones from earlier in 2024. Still, next year’s COLA is shaping up to be considerably smaller than the current year’s. It’s worth noting a smaller Social Security COLA isn’t such a terrible thing in reality because it’s an indication of cooling inflation. Backman explains the CPI-W metric used to calculate COLA in the full piece here. COLA 2025 will be announced in mid October.

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