Social Security benefits will arguably lose buying power next year because the 2.5% COLA understates inflation.

Use any of the submission methods listed at the end of the column, although email is preferred. COLA scam attempts spike this time of year as Social Security beneficiaries expect to hear how much their monthly payments will increase to keep up with inflation.

In December, SSI recipients will receive their payments a day early – Dec. 31 – because Jan. 1 is the New Year’s Day holiday. These checks will reflect two different amounts because the 2025 Cost of Living Adjustment increase will apply to the payment made on Dec. 31.

The most direct and obvious effect of the new COLA is the increase in monthly benefits. If your monthly Social Security benefit is $1,000 this year, it will be $1,025 starting in January 2025. If it's $2,000 now, it'll be $2,050.

Medicare Part B premiums are rising again in 2025. The jump outpaces both Social Security's 2025 COLA and inflation, further squeezing seniors.