Social Security is the cornerstone of many retirement plans. The program's monthly checks account for more than 50% of total household income for half of people age 65 or older, according to data analyzed by the Social Security Administration (SSA).

That makes the annual cost-of-living adjustment (COLA) built into Social Security an important factor for retirees to determine their budget for next year. The COLA is designed to help benefits keep up with inflation, a growing challenge for many seniors in recent years.

Earlier this month, the U.S. Bureau of Labor Statistics released the first data point that will go into determining the 2025 COLA. Retirees hoping for another big raise in their monthly check might see next year's benefit increase as a letdown.

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Source Fool.com