Social Security COLAs often don’t work for retirees. But you can make up for it by doing these 3 things to get more benefits to begin with.

On October 10, the Social Security Administration (SSA) announced that benefits will be subject to a 2.5% cost of living adjustment (COLA) in 2025. And many seniors are undoubtedly unhappy about this, given that the COLA in 2025 is significantly lower than in 2025. COLAs that have emerged in recent years.

But here’s the truth. It makes virtually no difference what Social Security COLA recipients will receive in 2025. Unfortunately, the reality is that any COLA will likely not benefit seniors due to an error in the way these premiums are calculated.

Social Security COLAs are based on changes in the Consumer Price Index for Urban Wage Earners (CPI-W) from one year to the next. But the CPI-W falls short of adequately accounting for the costs that Social Security beneficiaries typically face. Thus, the use of COLAs on this basis is unfair to older adults.

The Senior Citizens League reports that average Social Security payments in 2024 will be only about $0.80 compared to 2010 levels. In other words, Social Security beneficiaries have lost about 20% of their purchasing power over the past 14 years.

The bad news is that Social Security recipients are currently stuck with this less-than-ideal method of calculating COLAs. Lawmakers would need changes to use a different measure, such as the CPI-E (Consumer Price Index for Seniors).

However, if you’re worried that not getting enough Social Security COLA could ruin your retirement finances, you can get around this problem by setting yourself up for a larger monthly benefit to begin with. Here’s how.

1. Work for at least 35 years.

The monthly Social Security benefit you are entitled to when you retire is based on your earnings over your 35 most profitable years. But unless you have a full 35 years of work history, your benefit calculation will include $0 for each year you have no reported income. So if you’re nearing the end of your career and you’re a little short of your 35-year income, consider delaying retirement a year or two to make up the difference.

2. Make sure your income information is accurate.

The more money you earn during your career, the more Social Security benefits you are entitled to. But if the SSA keeps inaccurate wage records for you, it could result in benefits that are less than you should receive.

To avoid this, create an account on the SSA website and review your income statement annually. If you find that your income is underreported at any point in time, contact the SSA and work with the agency to update this information.

3. Delay claiming benefits until age 70.

You are entitled to your full monthly Social Security benefit based on your individual earnings history at full retirement age. If you were born in 1960 or later, your full retirement age is 67.

But if you wait to claim Social Security beyond that point, for each month your monthly retirement benefit increases by 2/3 of 1%. In other words, this benefit increases at 8% per year, and you can accumulate deferred retirement credits until age 70. So, when you reach your full retirement age of 67, you can increase your monthly benefit by up to 24%—for life.

Unfortunately, Social Security’s annual COLAs don’t help seniors keep up with their expenses. But if you start retiring with a larger monthly benefit, you’ll be in an even better position to manage senior living expenses over the years.