MONEY

 Newsweek -  Social Security disability recipients' fears have been realized by the Cost of Living Adjustment (COLA) for 2025. The Social Security Administration (SSA) announced on October 10 that benefits payable for 2025 would be boosted by 2.5 percent—considerably less than the preceding two years. The COLA has been a long-standing element of Social Security benefits. Lawmakers first put it in place in 1975, with the adjustment designed to keep payments in line with inflation so that purchasing power is not eroded over time.

But given that in recent years, benefits have increased by more than 2.5 percent annually, many Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) recipients were anxious that this year's increase would not live up to previous expectations. In 2023, a historic rise of 8.7 percent was granted to retirees and other benefit claimants because of runaway inflation caused by the nation's recovery from COVID-19. For benefits paid this year, there was a boost of 3.2 percent, reflective of slowing inflation following the pandemic.