Social Security payments will increase by 2.5% in 2025, providing welcome relief to millions of beneficiaries across the country.
There is good news for Social Security recipients: your monthly benefits are about to increase. The Social Security Administration has announced a 2.5% Cost-of-Living Adjustment (COLA) for 2025, which will increase the income of over 72.5 million Americans. For most retirees, this means an extra $50 per month beginning in January.
What You Need to Know About the Increase
- Nearly 68 million Social Security beneficiaries will see a 2.5% boost in their January 2025 checks
- About 7.5 million SSI recipients will see their increase slightly earlier, on December 31, 2024
- This 2.5% adjustment follows last year’s 3.2% increase
- It’s close to the decade’s average COLA of 2.6%
Breaking Down the Numbers
If you’re receiving Social Security retirement benefits, your increase will depend on your current payment amount. For example, if you receive the average monthly benefit of $1,827, you’ll see roughly $50 more each month. Beneficiaries with higher payments will see larger dollar increases, while those with lower payments will see smaller ones.
Don’t Forget About Medicare
Here’s an important tip: If you’re on Medicare, check how its premium changes might affect your increase. Medicare Part B premiums come directly out of your Social Security payment, so your actual take-home increase might be different from what you expect.
Other Important Changes for 2025
The COLA affects more than just your monthly payment. You’ll also see adjustments to:
- Earnings limits if you’re working while receiving benefits
- Social Security tax thresholds
- SSI payment standards
- Disability benefit thresholds
Smart Planning Steps
Take these actions to make the most of your increased benefits:
- Review your monthly budget
- Account for Medicare premium changes
- Update your tax withholding if needed
- Check how working might affect your new benefit amount
Need Help Understanding Your Benefits?
Social Security rules can be complex, and every person’s situation is unique. Our experienced Social Security attorneys are here to help you understand exactly how these changes affect you. Contact us today for personalized guidance about your benefits.
Remember that while the increase is announced now, it will appear in your January 2025 payment (December 31, 2024, for SSI recipients). This gives you time to plan and adjust your finances accordingly.
