Despite cooling inflation trends, many American household budgets remain under pressure, particularly those of retirees. However, some relief may be on the way as Social Security's cost of living adjustment (COLA) is expected to increase benefits by 2.5%.

Yahoo Finance Senior Columnist Kerry Hannon breaks down the details, examining how this benefit adjustment is calculated, its impact on Social Security beneficiaries, and the broader challenges Americans face in saving for retirement.

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This post was written by Angel Smith.