A recent confirmation from the Social Security Administration says that starting in January 2025, the new cost of living adjustment (COLA) for 2025 will be added to Social Security benefits.
Many people who depend on these monthly payments are looking forward to October, when the official COLA percentage will be released. They want to know how this increase will affect their monthly income for the next year.
The goal of the US Social Security program is to help people financially when hard things happen, like getting old, becoming disabled, or losing a loved one.
The list of all Social Security checks with 2025 COLA increase
To keep these programs working, the people who get money from them need to have their payments changed to reflect the cost of living right now.
This change is based on the Cost of Living Adjustment, or COLA. COLA is a way to track how the prices of everyday goods and services change.
The COLA is found every year by comparing the average of the third quarter of the previous year (July, August, and September) to the same quarter of the current year.
The well-known Consumer Price Index for Urban Wage Earners and Clerical Employees (CPI-W) will be used by the Bureau of Labor Statistics.
Remember that the change made to Social Security checks is based on the percentage difference between these two time periods. The 2025 COLA will mean that the benefits of about 68 million people who get Social Security will go up in January.
From December 31, 2024, onward, 7.5 million more people who get SSI will get higher benefits. The rise is good news for the millions of low-income families, disabled people, and seniors who depend on these benefits because they help them pay their bills.
It is also important to note that COLA changes can have an effect on Medicare premiums. As a general rule, Medicare Part B premiums go up at the same rate as Social Security benefits.
The increase in Medicare premiums may partially cancel out the COLA for many people, making the adjustment less helpful overall. The amount that Medicare premiums will go up in 2025 has not been decided yet, but it will be later this year.
| Retirement benefits | Monthly benefits | 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 | Monthly benefits | 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 | Monthly benefits | 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 | Monthly benefits | 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 |
Do not forget that you can use your “My Social Security Account” to get more information about your Social Security checks, download your financial statements, find out how much your monthly payment is, and even ask for more Social Security information.
Why is the COLA increase relevant for millions of Americans?
Because of the 2025 COLA, monthly benefits will always go up by the same amount as inflation. This gives millions of Americans important financial security.
You can make smart financial choices if you know how COLA affects your benefits, whether you are already getting them or are saving for retirement.
Even though the 2.5% increase may not seem like much compared to previous years, it is very important to keep the spending power of Americans with low incomes who depend on retirement or SSI benefits and people who are disabled.
So, beneficiaries need to know how changes to the taxable maximum, the retirement earnings test, and the way benefits are calculated will affect the money they get from Social Security.
As 2025 draws near, staying up to date on these big changes will help people get the most out of their benefits and plan for their financial future.
