On October 10, the Social Security Administration will announce an official COLA for 2025. But if that number makes a huge difference in your finances, that's a problem. And so regardless of what next year's COLA amounts to, it's wise to consider the changes above if you're tired of worrying about money day in, day out.

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.

The Social Security Administration announced it would be increasing benefits by 2.5% to account for cost-of-living adjustments in January 2025. On average, this means that beneficiaries will see an extra $50 in their monthly benefits allotment.