Millions of Americans receiving Social Security benefits are starting the new year with welcome news: a 2.5% increase in their payments. This adjustment, known as the Cost-of-Living Adjustment (COLA), ensures benefits keep pace with inflation. Here’s what you need to know about how this increase will impact your monthly checks and the new payment schedules.
How Much More Will You Get?
For retirees, the average monthly benefit will rise by around $50. This brings the average check from $1,927 in 2024 to $1,976 in 2025. Those who retired at age 70 will see their maximum monthly benefit jump to $5,108, up from $4,873 last year. For individuals who retire at full retirement age, the maximum benefit will now be $4,018.
Supplemental Security Income (SSI) recipients will also get more money. The federal maximum payment has increased to $967 per month for individuals and $1,450 for eligible couples.
When Will You Receive Your Payments?
The Social Security Administration has released the updated payment schedule for 2025:
- If your birthday falls between the 1st and 10th of the month, your payment will arrive on the second Wednesday.
- Birthdays between the 11th and 20th will receive payments on the third Wednesday.
- Birthdays between the 21st and 31st will see payments on the fourth Wednesday.
For January 2025, this means payments will go out on January 8th, 15th, and 22nd, depending on your birth date.
A Big Win for Public Sector Workers
President Biden signed the Social Security Fairness Act into law earlier this month. This landmark legislation eliminates penalties that previously reduced Social Security benefits for public-sector workers like teachers, firefighters, and police officers. Thanks to this new law, many will see their monthly benefits increase by $360 to $1,190.
What’s Behind the Smaller COLA?
While this year’s 2.5% COLA is smaller than the 3.2% increase in 2024 and the massive 8.7% boost in 2023, it reflects lower inflation rates. Experts say this adjustment is aimed at stabilizing benefits while still providing critical financial support to recipients.
What Should You Do Next?
Make sure to double-check your payment amounts and payment dates, especially if you’re new to receiving benefits. You can get detailed updates and manage your account through the Social Security Administration’s online portal, “my Social Security.”
These updates provide a lifeline to retirees, people with disabilities, and public-sector workers who depend on Social Security for financial stability. With the new increases and adjusted payment schedules, 2025 brings a mix of progress and relief for millions of Americans.
