Of course, we do need to consider the big picture. The reason 2025's Social Security COLA is only 2.5% is that inflation has slowed down considerably in 2024 compared to recent years. So in theory, things should balance out, and seniors on Social Security should be able to maintain their buying power in the new year.

Retirement brings new financial challenges, particularly when Social Security makes up all or most of your income. ​​To ensure a good quality of life later on, it's vital to cut spending now.

The Social Security Administration has announced that Supplemental Security Income (SSI) payments will see a significant increase in December. This adjustment is part of the annual cost of living adjustment (COLA) based on inflation data.