The cost-of-living adjustment (COLA) for federal retirees in 2025 is a crucial measure that aims to protect the financial well-being of retired federal employees amidst rising inflation. COLA is an annual adjustment to federal retirement benefits, including pensions and annuities, that is intended to keep pace with the rising cost of living.
The importance of COLA cannot be overstated. Federal retirees, who have dedicated their careers to serving the public, rely on their retirement benefits as a source of financial security. COLA ensures that the value of their benefits is maintained, allowing them to continue to afford basic necessities and maintain a decent standard of living.
