The cost-of-living adjustment, or COLA, is something that Social Security retirees in the US look forward to every year. It makes their payouts reflect the cost of living.
This raised amount will be big in 2025, but there is one group that will gain the most from it: people who retire at age 70, or the Dealyed Retirement Age. Because of how their payments are figured, these retirees will see a much bigger rise.
If you wait to retire, your Social Security payments will go up. When you turn 70, your payouts will be a lot more than they would have been if you had started getting them at the minimum age of 62.
With the 2.5% COLA in 2025, this change will be even more important for people who have been waiting to get their benefits.
It is important to know how the COLA works and why people who retire at age 70 will gain the most from it. With the COLA raise, older retirees will not only be able to keep up with the rising cost of living, but they will also be able to make even more money.
Biggest Social Security COLA in 2025
People who did not retire until they were 70 years old will get the biggest COLA increase in 2025.
This is because people who retire at this age already get better payments, and the proportional change will be bigger. With these higher amounts and the 2.5% COLA, they will have more money in their accounts every month.
One example is a retiree who gets the highest payment of $4,873 for retiring late in 2024. In 2025, their check will go up by about $300 each month, for a total of $5,180 each month.
The amount given here is a lot more than the increase that people who quit earlier would get.
Not only does putting off retirement mean that the COLA is used up, but the payouts also keep going up until age 70. This delay will make seniors’ finances more stable in the long run because they will make more money when they are old.
2025 COLA and maximum checks by category
All types of retirees will be affected by the 2025 COLA, but the amount of their check will depend on their own situation. Here are the most checks that are likely to be done in each category:
| Category | Maximum Payment 2025 |
|---|---|
| Full Retirement | $4,018 |
| Disability Retirement | $4,018 |
| Delayed Retirement | $5,180 |
These checks show the most money that retirees can expect to get. The 2025 COLA raise will be added on top of these amounts, giving retirees who have had to wait longer a much bigger benefit.
The Supplemental Security Income will also go up, and it will now be $967 a month.
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