Your Social Security payment will shrink next month – here’s why the cost-of-living adjustment united with a tax surprise
If you’re retired and relying on your monthly Social Security check, brace yourself for a hit to your wallet starting next month. A new government report reveals a smaller-than-expected cost-of-living adjustment for 2025—just 2.5%—but that’s only half the bad news. Higher Medicare Part B premiums, which are automatically deducted, are set to rise by nearly $10 per month, eating up most of that increase. On top of that, a united push by state legislatures to tax more Social Security benefits means your net payment could actually drop. The average retiree stands to lose roughly $35 a month in real buying power, enough to skip a trip to the grocery store or the pharmacy.