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

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

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.

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.

Medicare Part B premiums are rising again in 2025. The jump outpaces both Social Security's 2025 COLA and inflation, further squeezing seniors.

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.

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.

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