Social Security (retirement and survivors) recipients will now see a 2.5% increase in their next check and throughout the year. The COLA increase also extends to Supplemental Security Income and Social Security Disability insurance recipients.

Social Security cost-of-living adjustment, or COLA, is based on third-quarter inflation data, so it was officially announced in October when the last of the official CPI data from the third quarter was released.

Each year, tens of millions of retirees collecting Social Security benefits anxiously await the upcoming COLA, or cost-of-living-adjustment (COLA). The COLA is a pivotal part of the Social Security program that reflects the next year's increase in Social Security benefits.