Social Security recipients will see a boost in their monthly benefits starting this year, thanks to a 2.5% cost-of-living adjustment (COLA) for 2025. On average, beneficiaries will receive an additional $50 per month, providing modest relief to help combat the rising costs of everyday expenses.
What Is the COLA, and Why Is It Important?
The COLA is an annual adjustment applied to Social Security payments to ensure that benefits keep up with inflation. The adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation calculated by the Bureau of Labor Statistics. For 2025, the 2.5% increase reflects slowing inflation compared to 2024’s 3.2% adjustment.
This increase is designed to help retirees, disabled individuals, and Supplemental Security Income (SSI) recipients maintain their purchasing power as prices for goods and services fluctuate.
How Much More Will You Receive Each Month?
- Average Social Security Retirement Benefit: Beneficiaries who receive an average monthly payment of around $2,000 will see their payments rise to $2,050 per month.
- For Lower-Income Recipients: Those who receive smaller benefits will still see a proportional increase. For example, someone currently receiving $1,200 monthly would see an extra $30 per month, bringing their new payment to $1,230.
While the additional $50 may seem modest, it can help offset rising expenses for food, housing, and healthcare.
SSI Recipients Will See a Boost Too
Supplemental Security Income (SSI) recipients will also benefit from the COLA increase:
- Individual Federal Payment Standard: Increases from $944 per month to $967.
- Couples: Monthly payments will increase from $1,415 to $1,450.
SSI payments are critical for individuals with disabilities and low-income seniors, and even small adjustments can make a significant difference.
When Will You See the Increase?
The new payment amounts took effect in January 2025. Most beneficiaries should have already seen the increase reflected in their January deposits. If you haven’t noticed the adjustment, check your payment details through your My Social Security account or contact the Social Security Administration (SSA) for assistance.
How to Check Your New Payment Amount
The SSA will notify beneficiaries of their updated benefit amounts by mail. You can also check your new monthly payment online by logging into your My Social Security account at ssa.gov.
Final Thoughts
Although the 2.5% increase is smaller than last year’s adjustment, it still offers valuable support for millions of Americans facing rising living costs. Beneficiaries are encouraged to budget wisely and explore other financial resources to make the most of their increased benefits.
