In 2025, Social Security and Supplemental Security Income (SSI) benefits for over 72.5 million Americans will increase by 2.5%, as announced by the Social Security Administration (SSA) .
This cost-of-living adjustment (COLA) aims to help beneficiaries keep pace with inflation.
Payment Schedule for 2025 COLA Increase
| Beneficiary Type | Payment Start Date |
|---|---|
| SSI Recipients | December 31, 2024 |
| Social Security Beneficiaries | January 2025 |
Beneficiaries will receive notifications about their new benefit amounts through the my Social Security account portal starting in early December 2024 .
Who Is Eligible for the COLA Increase?
The 2.5% COLA applies to:
- Retired workers
- Disabled individuals
- Survivors
- SSI recipients
Eligibility is automatic for current beneficiaries; no additional action is required.
Impact on Benefits
The average monthly benefit amounts will adjust as follows:
| Beneficiary Category | 2024 Average | 2025 Average |
|---|---|---|
| Retired Workers | $1,927 | $1,976 |
| Aged Couple (Both Receiving Benefits) | $3,014 | $3,089 |
| Widowed Mother and Two Children | $3,669 | $3,761 |
| Aged Widow(er) Alone | $1,788 | $1,832 |
| Disabled Worker, Spouse, and Children | $2,757 | $2,826 |
| All Disabled Workers | $1,542 | $1,580 |
Note: These figures are averages; individual benefits may vary based on earnings history and other factors.
Additional Changes in 2025
- Maximum Taxable Earnings: Increased from $168,600 to $176,100 .
- Earnings Limit for Workers Under Full Retirement Age: Raised to $23,400 annually.
- Earnings Limit for Workers Reaching Full Retirement Age in 2025: Increased to $62,160 annually.
Tips to Maximize Your Benefits
- Review Your Earnings Record: Ensure your earnings history is accurate to receive the correct benefit amount.
- Delay Retirement: Waiting until age 70 to claim benefits can increase your monthly payment.
- Understand Tax Implications: Be aware of how your benefits may be taxed based on your total income.
The 2.5% COLA increase in 2025 reflects the government’s effort to adjust Social Security and SSI benefits in line with inflation.
Beneficiaries can expect modest increases in their monthly payments, helping to maintain their purchasing power in the face of rising living costs.
FAQs
When will I see the increased payment in my account?
SSI recipients will see the increase on December 31, 2024. Social Security beneficiaries will see the increase starting in January 2025.
Do I need to apply for the COLA increase?
No, the COLA increase is automatic for all eligible beneficiaries.
How can I find out my new benefit amount?
You can view your updated benefit amount through your my Social Security account starting in early December 2024.