Retirees across the United States now know how big of a raise they'll receive next year. The Social Security Administration (SSA) announced last week that the 2025 Social Security cost-of-living adjustment (COLA) will be 2.5%.

The Cost of Living Adjustment, more commonly known as COLA, increases benefits administered by the SSA on a yearly basis. The COLA is designed to keep Social Security retirement, survivor and disability payments in line with inflation, so that purchasing power is not eroded over time.