Americans Ages 50-Plus Say Estimated 2025 Social Security Cost-of-Living-Adjustment Too Low

Social Security’s cost-of-living adjustment (COLA) typically provides retirees with an annual increase in their retirement payment based on a national measure of inflation. In 2023, retirees saw a record 8.7% COLA and a more modest 3.2% bump in 2024.

The goal of the COLA is to offset rising prices. However, AARP Research fielded in August 2024 shows that older adults feel the projected COLA of less than 3% is insufficient to do that job. Only 16% of Americans ages 50-plus agree that “a cost-of-living adjustment (COLA) of less than 3% for Social Security recipients is enough to keep up with rising prices.” In fact, more than four in five disagree (83%) with this statement, including 61% who strongly disagree that less than a 3% COLA can keep up with costs. Agreement and disagreement are similar regardless of political party, with disagreement expressed by the large majority of Republicans (85%), Independents (80%) and Democrats (82%).

Methodology

Interviews were conducted between August 15 and 19, 2024, among 1,000 U.S. adults age 50-plus in the Foresight 50+ Omnibus. Funded and operated by NORC at the University of Chicago, Foresight 50+ is a probability-based panel designed to be representative of the U.S. household population age 50 or older. Interviews were conducted online and via phone. All data are weighted by age, sex, education, race/ethnicity, region, and AARP membership.

For more information, contact Rebecca Perron at rperron@aarp.org . For media inquiries, contact External Relations at media@aarp.org.