Social Security benefits will arguably lose buying power next year because the 2.5% COLA understates inflation.

A free my Social Security Account will allow recipients to view the latest COLA notices detailing the exact amount they will receive starting next year.

Now, with the year winding down, all Social Security retirees should mark Nov. 20 as another date to remember. Here's why.

If it weren't for Social Security, millions of older Americans would no doubt struggle to keep up with their ongoing expenses. That's what makes Social Security's cost-of-living adjustments (COLAs) so important.

In December, SSI recipients will receive their payments a day early – Dec. 31 – because Jan. 1 is the New Year’s Day holiday. These checks will reflect two different amounts because the 2025 Cost of Living Adjustment increase will apply to the payment made on Dec. 31.

A Social Security cost of living increase offers retirees options such as managing costs, saving or enjoying small splurges.

The most direct and obvious effect of the new COLA is the increase in monthly benefits. If your monthly Social Security benefit is $1,000 this year, it will be $1,025 starting in January 2025. If it's $2,000 now, it'll be $2,050.

This double SSI check is due to Dec. 1 falling on a Sunday this year. Recipients, who usually receive their checks the first of the month, will get their November payment on Nov. 1, and their SSI payments for December will be distributed on Friday, Nov. 29, according to the SSA calendar.

Although Social Security's annual adjustment is mathematically fair, the procedure still arguably leaves retirees at a disadvantage. That is, by the time recipients begin receiving their bigger payments, they've been paying higher prices for everything for up to as much as a year.