The Social Security Administration has recently confirmed that the new cost of living adjustment (COLA) for 2025 will be added to Social Security payments in January 2025. The new COLA will be made public soon.
Millions of people who count on these monthly payments are waiting for the official COLA percentage to be released so they can see how this increase will affect their monthly income for the next year.
October is getting close. In the US, Social Security is meant to help people with money when they are having a hard time, like when they are old, disabled, or a family member dies.
Social Security changes announced in new cost of living adjustments for 2025
For these programs to keep working, the people who get money from them need to have their benefits changed to reflect the current cost of living. The cost of living adjustment (COLA) is what this change is based on.
COLA is a measure that tracks changes in the prices of basic goods and services. Every year, the COLA is found by comparing the average of the third quarter (July, August, and September) of the prior year to the same quarter of the current year.
One tool that does this is the Consumer Price Index for Urban Wage Earners and Clerical Employees (CPI-W). The change that will be made to the checks that people who get social security receive is based on the percentage difference between these two time periods.
The Social Security Administration sets the cost of living adjustment and applies it to all beneficiaries’ benefit amounts. This includes survivors, retirees, people with disabilities, and people who get Supplemental Security Income (SSI).
This change also affects other Social Security data, like the maximum wages and work credits that people must meet in order to get benefits.
The most current predictions from the Senior Citizens League say that the COLA adjustment percentage, which determines how much Social Security payments go up, will be between 2.57% and 2.63% this coming year.
Because of this, beneficiaries will get a little bigger weekly checks. But it is important to keep in mind that bigger COLAs usually mean higher inflation, which could make things less affordable.
Before we get to the exact number, we would like to give you an idea of how much your Social Security checks will be for the retirement, survivor, and disability insurance (RSDI) and Supplemental Security Income benefit programs. These estimates are based on the 2.57% and 2.63% scenarios.
| Retirement benefits | Social Security checks | 2.57% COLA increase | 2.63% COLA increase |
| On average | $1,900 | $1,949 | $1,950 |
| Age 62 | $2,710 | $2,780 | $2,781 |
| Age 67 | $3,822 | $3,920 | $3,923 |
| Age 70 | $4,873 | $4,998 | $5,001 |
| Survivor benefits | Social Security checks | 2.57% COLA increase | 2.63% COLA increase |
| On average | $1,505 | $1,544 | $1,545 |
| Individual | $1,773 | $1,819 | $1,820 |
| 2 Children | $3,653 | $3,747 | $3,749 |
| Disability benefits | Social Security checks | 2.57% COLA increase | 2.63% COLA increase |
| On average | $1,537 | $1,577 | $1,577 |
| Blind recipients | $2,590 | $2,657 | $2,658 |
| Maximum payment | $3,822 | $3,920 | $3,923 |
| SSI benefits | Social Security checks | 2.57% COLA increase | 2.63% COLA increase |
| On average | $698 | $716 | $716 |
| Individuals | $943 | $967 | $968 |
| Couples | $1,415 | $1,451 | $1,452 |
| Essential person | $472 | $484 | $484 |
Additional COLA projections that beneficiaries should consider for next year
Based on what Mary Johnson, an expert policy analyst for Social Security and Medicare, told Newsweek, the cost of living adjustment (COLA) for beneficiaries will be the lowest it has been since 2021.
The prices of things like food, housing, car insurance, and any kind of service or repair will also keep going up. Even though this COLA estimate is the lowest since 2021, 2.5% is still thought to be the norm.
Do not forget that the official COLA statement is on October 10th. Johnson also said that there is a 17.7% chance that the COLA will be more than 2.5% in 2025. There is a 13% chance that it will not meet that level.
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