With a little more than a month before the 2025 COLA kicks in, here's what you should know about the upcoming adjustment.

Social Security's annual cost-of-living adjustments (COLAs) are calculated based on how inflation changes in the third quarter, the three-month period from July through September. In this scenario, inflation is measured using a subset of the Consumer Price Index (CPI) known as the CPI-W.

Due to how the Social Security Administration schedules payments to beneficiaries, some will receive theirs with the 2025 COLA increase in December.

A 2.5% cost-of-living adjustment increase will mean an extra $50 a month for most Social Security and SSI recipients.

Last month, the Social Security Administration announced that beneficiaries will receive a 2.5% cost-of-living adjustment (COLA) in 2025. That revelation disappointed many Social Security recipients. In fact, a recent survey conducted by The Motley Fool found that 54% of retired workers believe the 2025 COLA is insufficient.