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COLA

Stay informed on the latest COLA updates for federal retirees, including annual Cost‑of‑Living Adjustment announcements, calculation methods, and policy changes that affect retirement income under FERS and CSRS. Explore clear explanations of how COLA percentages are determined, historical trends in federal retiree COLAs, and the impact of inflation on long‑term financial security. Find timely analysis, legislative developments, and expert insights to help federal retirees understand how annual COLA changes influence their purchasing power and overall retirement planning.

August Inflation Rate Reduces Likely 2025 COLA—But Still Above Projected Annual Pay Raise

FedSmith.com author Ralph R. SmithBy Ralph R. SmithSep 11, 2024 9:30 AM Categories Retirement Leave a comment
Shopping cart on the left side of a balance beam that is lower than a piggy bank on the other side

The 2nd month of inflation data determining the 2025 COLA has been released. The 2025 COLA will be less than in 2024 but probably still larger than the average 2025 pay raise.

Comparing the 2025 COLA to the 2025 Federal Pay Raise: 2.57% in 2025?

FedSmith.com author Ralph R. SmithBy Ralph R. SmithAug 14, 2024 9:09 AM Categories Retirement, Pay & Benefits Leave a comment
Shopping cart pictured next to stacks of coins with dollar signs above them

It is the time of year when federal employees and retirees start thinking about the COLA and annual pay raise. What are the likely figures for 2025?

What are the Biggest Financial Considerations in Deciding When to Retire from a Federal Career?

FedSmith.com author Brennan RhuleBy Brennan RhuleJul 26, 2024 9:32 AM Categories Retirement Leave a comment
Directional sign next to a road with one part labeled 'work' pointing in one direction and another part labeled 'retire' pointing in the opposite direction

These are important factors that federal employees must consider to prepare for a successful retirement.

Inflation, CPI, and the 2025 COLA: “We’re in the Money, The Skies are Sunny”

FedSmith.com author Ralph R. SmithBy Ralph R. SmithJul 11, 2024 10:31 AM Categories Retirement Leave a comment
Impact of inflation on everyday items as of June 2024: Food, electricity, shelter, new cars and transportation services

“We’re in the money” was a hit song in 1933 as Hollywood tried to project a favorable view of the economy. Today, inflation news is good. “We’re in the money” again.

Because of Inflation, 2025 COLA Estimates Going Up Every Month

FedSmith.com author Ralph R. SmithBy Ralph R. SmithJun 12, 2024 9:27 AM Categories Retirement Leave a comment
Grocery/retail store shopping cart with a white cardboard sign in it with three dollar signs ($) on it in black font

The inflation estimates for the 2025 COLA are getting higher every month. Here are the inflation data for May 2024.

Should I Stay or Go? Reasons to Keep Your Federal Job

FedSmith.com author Charles DzamaBy Charles DzamaMay 23, 2024 2:12 PM Categories Pay & Benefits Leave a comment
Looking down at a businessman's shoes up against a black line labeled 'turning point' above which lies two red arrows pointing in opposite directions, one labeled 'continue' the other labeled 'change job'

Federal employees who are considering taking a private sector job must carefully compare their federal benefits to the new position.

Inflation and the 2025 COLA: COLA Projections Getting Higher Each Month

FedSmith.com author Ralph R. SmithBy Ralph R. SmithMay 15, 2024 9:25 AM Categories Retirement Leave a comment
Tipped over shopping cart with coins scattered around it with the word 'inflation' written in block letters in the foreground

Inflation is still rising and the projections for the 2025 COLA are rising as well.

March Inflation Report: Why It’s Important

FedSmith.com author Ralph R. SmithBy Ralph R. SmithApr 10, 2024 9:18 AM Categories Retirement Leave a comment
Impact of inflation on everyday items as of March 2024: Food, electricity, shelter, new cars and transportation services

The March CPI report shows continuing inflation so far in 2024. This may mean a higher 2025 COLA but a negative economic impact on all consumers.

CPI Report Shows February Inflation Rises Faster Than Expected

FedSmith.com author Ralph R. SmithBy Ralph R. SmithMar 12, 2024 9:34 AM | Updated: Apr 10, 2024 8:57 AM Categories Retirement Leave a comment

The latest CPI data indicate that inflation rose faster in February than expected.

Your 2025 COLA: Early Projection of 1.75%

FedSmith.com author Ralph R. SmithBy Ralph R. SmithFeb 26, 2024 7:36 AM Categories Retirement Leave a comment
Shopping cart pictured in the background behind three vertical stacks of coins depicting the annual COLA/cost of living for federal retirees and Social Security recipients

The 2025 COLA payment will be effective in January 2025. Here is an early projection and how it compares to recent years.

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April 20, 2026

Fund Last % YTD
G Fund $19.8394 +0.04% +1.28%
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