In 2025, millions of Social Security recipients received a 2.5% Cost-of-Living Adjustment (COLA) to help keep up with inflation. While the percentage increase applies nationwide, the actual dollar amount varies based on an individual’s monthly benefits. Some states saw significantly higher boosts due to having larger average benefits.
On average, retirees are seeing an increase of about $50 per month, bringing the typical monthly benefit from $1,927 to $1,976. However, in states where retirees have historically received higher payments, the increase was even more noticeable.
States with the Largest Social Security Increases
According to data from the Social Security Administration, the following states had the highest average monthly Social Security benefits for retirees as of December 2023, meaning they also saw the biggest COLA increases in raw dollar amounts:
- New Jersey – $2,100 (Increase of ~$52.50)
- Connecticut – $2,084 (Increase of ~$52.10)
- Delaware – $2,064 (Increase of ~$51.60)
- New Hampshire – $2,039 (Increase of ~$50.98)
- Maryland – $2,008 (Increase of ~$50.20)
- Michigan – $2,004 (Increase of ~$50.10)
- Washington – $1,992 (Increase of ~$49.80)
- Minnesota – $1,982 (Increase of ~$49.55)
- Indiana – $1,952 (Increase of ~$48.80)
- Massachusetts – $1,946 (Increase of ~$48.65)
While retirees in every state saw their Social Security checks rise, New Jersey, Connecticut, and Delaware had the biggest monthly increases due to their higher base benefits.
Why Do Some States See Bigger Social Security Payments?
The reason some states have higher Social Security payments is tied to wages and work history. States with higher median incomes, such as New Jersey and Connecticut, tend to have retirees who earned more throughout their careers. Since Social Security benefits are based on lifetime earnings, retirees from these states generally receive higher monthly payments than those in lower-wage states.
Another factor is relocation. Many retirees move to states with a lower cost of living after retirement, which affects the average benefit amounts reported in each state.
What This Means for Social Security Recipients
While the COLA helps retirees maintain their purchasing power, it may not be enough to fully cover rising expenses, particularly as inflation continues to impact essential costs like housing, healthcare, and food.
For retirees looking to maximize their benefits, it’s essential to review Social Security statements regularly and explore financial strategies that complement these payments. Those with additional savings or pensions may have more flexibility, but for many, these annual COLA increases are crucial to maintaining their quality of life.
