Social Security has announced a 2.5% cost of living adjustment (COLA) for retirees in 2025. Mark Hamrick, Bankrate senior economic analyst, joins Wealth! to discuss how it may impact Americans' retirement strategies.

While the adjustment was just a slight increase, Hamrick explains that it still is significant for retirees, noting that the average recipient will be receiving around another $50 a month.

"I always kind of feel like this is more of a catch-up situation than it is somebody feeling like they're ahead of the game," he adds.

He explains that real wages are in positive territory, and has been outpacing inflation. "But we need to think about the fact that that is reported in aggregate. So we're really talking about the totality of the American public," Hamrick explains.

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This post was written by Melanie Riehl