Home » Social Security Announces 2.5 Percent Benefit Increase for 2025

Social Security Announces 2.5 Percent Benefit Increase for 2025

by CC News
Social Security Administration

Social Security benefits and Supplemental Security Income (SSI) payments for more than 72.5 million Americans will increase 2.5 percent in 2025, the Social Security Administration announced today. On average, Social Security retirement benefits will increase by about $50 per month starting in January.

Over the last decade the COLA increase has averaged about 2.6 percent. The COLA was 3.2 percent in 2024.

Nearly 68 million Social Security beneficiaries will see a 2.5 percent cost-of-living adjustment (COLA) beginning in January 2025.  Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2024. (Note: Some people receive both Social Security benefits and SSI).

“Social Security benefits and SSI payments will increase in 2025, helping tens of millions of people keep up with expenses even as inflation has started to cool,” said Martin O’Malley, Commissioner of Social Security.

Some other adjustments that take effect in January of each year are based on the increase in average wages.  Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) is slated to increase to $176,100 from $168,600.

Social Security begins notifying people about their new benefit amount by mail starting in early December.

This year, for the first time, Social Security beneficiaries will receive a newly designed and improved COLA notice that makes it easier for customers to find the information they need most. The simplified COLA notice is now only one page, uses plain and personalized language, and provides exact dates and dollar amounts of a person’s new benefit amount and any deductions.

Individuals who have a personal my Social Security account can view their COLA notice online, which is secure, easy, and faster than receiving a letter in the mail. People can set up text or email alerts when there is a new message–such as their COLA notice–waiting for them in my Social Security.

People will need to have a personal my Social Security account by Nov. 20 to see their COLA notice online. To get started, visit www.ssa.gov/myaccount.

Information about Medicare changes for 2025 will be available at www.medicare.gov. For Social Security beneficiaries enrolled in Medicare, the 2025 benefit amount will be available via my Social Security’s Message Center starting in late November. Those who have not opted to receive messages online will receive their COLA notice by mail in December.

The Social Security Act provides for how the COLA is calculated. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Department of Labor’s Bureau of Labor Statistics.

To read more, please visit www.ssa.gov/cola.

NOTE TO CORRESPONDENTS: Here is a fact sheet showing the effect of the various automatic adjustments.


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8 comments

Jiveass honky October 10, 2024 - 10:26 am

Medi-care increases,along with the medi-care decrease in payments will take care of that.

Rob October 10, 2024 - 3:12 pm

Example 1. How out of touch is government . Name one house hold bill that went up 2.5% in the last year🤔This should make everyone realize government is not the answer and is completely clueless.

Rob October 10, 2024 - 3:13 pm

I have not already said this 🤔 please post it .

Example 1. How out of touch is government . Name one house hold bill that went up 2.5% in the last year🤔This should make everyone realize government is not the answer and is completely clueless.

MODERATE October 11, 2024 - 8:31 am

The COLA calculation is codified in law and Social Security is obligated to follow it. No one ever promised that Social Security retirement is intended to “immunize” recipients from household bill increases. It’s intended to be a supplement (cushion, if you will) to retirement, not to be one’s total retirement resources. People need to take responsibility for their financial lives and not totally depend on “government.”

Jiveass honky October 13, 2024 - 11:32 am

Unlike congress , who make sure “their retirement” keeps ahead of inflation.

Not Sure October 11, 2024 - 9:46 am

Im looking about 40% increase across all bills in the last 3 years, and groceries about 60% higher. Guess its ramen for social security, oh wait thats no long 0.10 each, now looking at 0.30.

Granted by the time i can use social security there wont be any for me that im paying into currently, wish i didnt have to.

MEV October 11, 2024 - 10:20 pm

I could live on social security but then Biden took office and his policies causing inflation ruined my financial planning. The SSI COLA is a bad and annoying joke for seniors after Bidenomics has ruined the economy. Hope Harris is not elected. Harris will just make things worse than they already are. Harris wants to tax unrealized gains on retirement accounts. Wonder how she plans to do that when the stock market causes unrealized gains to change daily. Vote red! Taxpayers should not have to pay for Fed wasteful spending and the living expenses of illegal,immigrants.

MODERATE October 13, 2024 - 12:11 pm

Fact: The high inflation in 2022 and 2023 was due to Covid-related supply chain disruptions which would have occurred regardless of who was in the White House. Right now its down below 3%. Fact: “Unrealized gains on retirement accounts” already are taxed, but only when and as distributions are taken. That’s the law. “Fed wasteful spending” is a matter of opinion but there was plenty of it under Trump as well.

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