The 2025 Federal Retiree COLA (Price-of-Dwelling Adjustment) is an annual adjustment to the month-to-month annuity funds of federal retirees, primarily based on the rise within the Client Value Index for City Wage Earners and Clerical Employees (CPI-W). Related changes are made to Social Safety advantages and navy pensions. For 2025, the COLA is predicted to be introduced in October 2024 and can be efficient for advantages paid in January 2025.
The COLA is a crucial profit for federal retirees because it helps to make sure that their retirement earnings retains tempo with inflation and maintains its buying energy. Over the long run, the COLA has helped to guard the retirement safety of hundreds of thousands of federal workers and their households.