In 2025, Social Security may see a historic cost-of-living adjustment (COLA) of 3%, the fourth consecutive year of above-average increases. This would be the first time in 32 years that four consecutive COLAs have totaled at least 3%. However, this potential raise may fall short for retirees, as The Senior Citizens League analysis shows that Social Security income has lost 36% of its purchasing power since the start of the 21st century. The inflation drivers, such as shelter and medical care, are expenses that matter most to seniors. With housing costs soaring and medical service inflation increasing, even a 3% COLA may not be enough to offset rising prices. Despite the promising trend of higher COLAs in recent years, retirees may once again find themselves at a disadvantage in 2025.