If you’re receiving Social Security benefits, get ready for a boost in your monthly payments. The Social Security Administration (SSA) has officially announced a 2.5% Cost-of-Living Adjustment (COLA) for 2025, which will go into effect starting January. This increase aims to help millions of Americans keep up with rising living expenses.
The adjustment will benefit more than 72 million people, including retirees, disabled workers, and Supplemental Security Income (SSI) recipients.
How Much More Will You Get?
The 2.5% increase means the average beneficiary will see about $50 more per month. SSI recipients, whose new payment amounts started on December 31, 2024, will also see an increase. The maximum federal SSI benefit for individuals has risen to $967 per month, compared to $943 in 2024.
Why Did the COLA Change?
The annual COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index measures inflation and the overall cost of goods and services. While the 2.5% increase is lower than the 3.2% adjustment in 2024, it reflects a slowdown in inflation, signaling some relief from rising prices.
When Will You Get Your 2025 Payments?
Here’s the schedule for January 2025 payments based on your birth date:
- If your birth date falls on the 1st to 10th of the month: Your payment will be sent on January 8.
- If your birth date falls on the 11th to 20th of the month: Your payment will arrive on January 15.
- If your birth date falls on the 21st to 31st of the month: Expect your payment on January 22.
SSI recipients already saw their first increased payment on December 31, 2024. If you receive both SSI and Social Security benefits, your Social Security payment will follow the regular January schedule.
Other Key Changes to Be Aware Of
In addition to the COLA adjustment, the SSA is introducing a few other important changes for 2025:
- Higher Taxable Earnings Cap: The maximum amount of earnings subject to Social Security tax has increased from $168,600 in 2024 to $176,100 in 2025.
- Earnings Limits for Beneficiaries Under Full Retirement Age: If you haven’t reached full retirement age, you can earn up to $23,400 in 2025 without affecting your benefits. For those reaching full retirement age, the limit is $62,160. Once you reach full retirement age, there’s no limit on how much you can earn.
How to Check Your New Benefit Amount
The SSA has already started mailing notices to beneficiaries with details about their new payment amounts. If you’d rather check online, log in to your “my Social Security” account at ssa.gov. This is the fastest way to get updates and ensure you’re receiving the correct benefit amount.
Planning Ahead
While the 2.5% COLA will help offset some costs, it’s essential to review how the increase fits into your budget and future plans. With rising expenses continuing to impact many households, this adjustment could provide some much-needed relief.
For more details on the 2025 COLA and other updates, visit the SSA’s official website at ssa.gov/cola.
