Millions of Americans will see a boost in their Social Security checks starting this year, thanks to a 2.5% Cost-of-Living Adjustment (COLA). The increase aims to help retirees, disabled workers, and survivors stay ahead of rising living costs. Here’s a closer look at how much you’ll get, when to expect the extra money, and who’s eligible.
How Much More Will You Receive?
For retirees, the average monthly benefit will rise by about $50, bringing the new average to $1,976. Couples who receive joint benefits can expect an average of $3,089 per month. Survivors, such as widows or widowers, will receive an average of $1,832.
Disabled workers will also benefit, with their monthly payments increasing to around $1,580. Keep in mind that these amounts are averages, and your specific increase will depend on your current benefit level.
When Will You See the New Payments?
For those receiving Supplemental Security Income (SSI), the updated benefits began on December 31, 2024. If you receive standard Social Security benefits, you’ll notice the increase in your January 2025 payment.
The payment schedule depends on your birth date:
- If your birth date falls between the 1st and 10th of the month, you’ll receive your payment on the second Wednesday of each month.
- Birth dates between the 11th and 20th will receive payments on the third Wednesday.
- Those born between the 21st and the end of the month will be paid on the fourth Wednesday.
SSI payments are typically made on the first of each month.
Other Changes to Watch in 2025
Several important updates could impact your benefits:
- Higher Taxable Earnings: The maximum income subject to Social Security tax has increased to $176,100, up from $168,600 in 2024.
- Earnings Limits for Working Beneficiaries: If you’re working and under full retirement age, you can now earn up to $23,400 before your benefits are reduced. For those reaching full retirement age in 2025, the earnings limit is $62,160.
- Full Retirement Age: For individuals born in 1959, the full retirement age is 66 years and 10 months.
Why This Increase Matters
The COLA is meant to protect Social Security recipients from the effects of inflation. With the cost of essentials like groceries, housing, and healthcare continuing to rise, the 2.5% increase could provide much-needed relief. However, experts caution that some beneficiaries may still find their purchasing power stretched thin, depending on their living expenses.
How to Check Your New Benefit Amount
To see exactly how much your benefit has increased, visit the Social Security Administration’s official website and log into your “my Social Security” account. This online tool provides detailed information about your benefits, payment history, and future estimates.
Planning for the Future
As Social Security evolves, it’s important to stay informed and plan accordingly. Whether you’re approaching retirement or already receiving benefits, understanding these updates will help you manage your finances effectively in 2025 and beyond.
With these changes taking effect, beneficiaries should take time to review their finances and consider how the increased payments can be best utilized, whether for day-to-day expenses, savings, or investments. Staying proactive is key to making the most of your Social Security benefits.
