COLA

Social Security Announces 2.5 Percent Benefit Increase for 2025  

October 10, 2024 • By

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Last Updated: October 10, 2024

Social Security benefits and Supplemental Security Income (SSI) payments for more than 72.5 million Americans will increase 2.5% in 2025, the Social Security Administration announced today. On average, Social Security retirement benefits will increase by about $50 per month starting in January.

Over the last decade the cost-of-living adjustment (COLA) increase has averaged about 2.6%. The COLA was 3.2% in 2024.

Nearly 68 million Social Security beneficiaries will see a 2.5% COLA beginning in January 2025.  Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2024. (Note: Some people receive both Social Security benefits and SSI).

“Social Security benefits and SSI payments will increase in 2025, helping tens of millions of people keep up with expenses even as inflation has started to cool,” said Martin O’Malley, Commissioner of Social Security.

 

Some other adjustments that take effect in January of each year are based on the increase in average wages.  Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) is slated to increase to $176,100 from $168,600.

Social Security begins notifying people about their new benefit amount by mail starting in early December.

This year, for the first time, Social Security beneficiaries will receive a newly designed and improved COLA notice that makes it easier for customers to find the information they need most.  The simplified COLA notice is now only one page, uses plain and personalized language, and provides exact dates and dollar amounts of a person’s new benefit amount and any deductions. Learn more on our video.

Individuals who have a personal my Social Security account can view their COLA notice online, which is secure, easy, and faster than receiving a letter in the mail.  People can set up text or email alerts when there is a new message–such as their COLA notice–waiting for them in my Social Security.

People will need to have a personal my Social Security account by Nov. 20 to see their COLA notice online.  To get started, visit www.ssa.gov/myaccount.

Information about Medicare changes for 2025 will be available at www.medicare.gov.  For Social Security beneficiaries enrolled in Medicare, the 2025 benefit amount will be available via my Social Security’s Message Center starting in late November.  Those who have not opted to receive messages online will receive their COLA notice by mail in December.

The Social Security Act provides for how the COLA is calculated.  The Social Security Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Department of Labor’s Bureau of Labor Statistics.

To read more, please visit www.ssa.gov/cola.

 

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  1. June

    I’m Collecting a pension from state…30 quarters earned ..ssi… can I collect from my husbands ssi earnings @ my full retirement age?

    Reply
  2. S w.

    Getting a COLA increase of $32 caused me to be noneligible now for Medicaid! I believe this was a
    Set plan to throw Senior Disabled Americans off the program! I am disgusted with this country and what Biden and his clan did to it!s

    Reply
  3. Deanna

    When are they going to help women who were stay at home? Parents while the husband worked now. We end up divorced in poverty due to an injury. It’s really not fair. What can you do to change it? What will you do to change it??

    Reply
    • C.B.

      Hi, Deanna. Thanks for reading our blog and for your questions. We have programs to help you. To be eligible for divorced spouse benefits, you had to be married to your former husband at least 10 years, be currently unmarried, and not eligible for a higher benefit on your own record. To discuss divorced spouse benefits with a representative, you can call us at 1-800-772-1213, Monday through Friday, 8:00 a.m. to 7:00 p.m., or contact your local Social Security officeFor more information, check out our Frequently Asked Questions and our What Every Woman Should Know publication. We hope this helps.

      Reply
      • Deborah M.

        I am currently getting 1,033.00 I was suppose to be retiring on my x-husbands benefits.. I am unable to live on mine. Please call me at 863-934-5457. My name is Deborah Marie Early.

        Reply
        • C.B.

          Hi, Deborah. For security reasons, we do not have access to personal information in this venue. Therefore, we do not make calls to our customers. Please call our toll-free number at 1-800-772-1213 (TTY 1-800-325-0778) to discuss your situation. Our National 800 number is available Monday through Friday, 8:00 a.m. to 7:00 p.m. Keep in mind, wait times to speak to a representative are typically shorter in the morning, later in the week, and later in the month. As a reminder, never post your personal information on social media. Thanks.

          Reply
    • Adetokunbo D.

      Send them a stimulus check for the amount of 9200 dollars for that specific group of women.

      Reply
    • MadAtCOLAsystem

      I got a massive increase of $12 between SSDI and Medicaid and immediately they took away $11 of my snap EBT whatever you want to call it. The whole point is to have more money in your pocket, plus my rent is going to go up again this year. This is a joke, a sick joke. I’m on the lowest tier of disability existing, not living, on now $975 a month. I’m better off not getting any increase, because it’s costing me more money.

      Reply
  4. Jp

    I would like to know if I will be receiving an increase in my SS monthly benefits. I talked to the state of Connecticut for 39 years but I do collect social security from a job that I had when I was 16 till I was 29 years old. Was 242 a month but then I picked up Medicare b I also had a and now it said I’m only getting $75. Will that increase even though they take out for Medicare B

    Reply
    • Reynord L.

      Dear JP, I understand your concern about the reduction in your Social Security benefits. When Medicare Part B premiums are deducted (which is $174.70 per month in 2024), it does reduce your net payment. To better understand how these numbers work out, you can check this calculation: https://multiplication.fouroperations.com/174-times-12 for your annual Medicare B cost.
      Your benefit amount of $242 minus the Part B premium explains why you’re now receiving around $75. While Social Security benefits typically increase annually with Cost of Living Adjustments (COLA), the Medicare premiums can also change each year.

      Reply
    • T.Y.

      Hi, Jp. Thanks for reading our blog. For your security, we do not have access to private information in this venue. To speak with a representative about your benefits, you can call us at 1-800-772-1213, Monday through Friday, 8:00 a.m. to 7:00 p.m. We hope this helps.

      Reply
  5. Richard D.

    When I retired I lost Half of my Social Security because I was drawing a State retirement from SERS,Now a new law claims I can get most of that back ,When will this Happen??

    Reply
    • T.Y.

      Thank you for reading our blog, Richard. The Social Security Administration is awaiting the possible final enactment of the Social Security Fairness Act into law and rules for implementation. We will provide more information on our website, http://www.ssa.gov as it becomes available. we hope this helps.

      Reply
  6. Kenneth R.

    In my January 2025 social security payment. I did not receive my 2.5% cola increase.

    Reply
    • Elizabeth P.

      Want the how much I’m getting money on card

      Reply
    • Bruce J.

      I just got mine yesterday and I didn’t get the 2.5% increase either. Should have been $50+ and it was only $9. Like all of us, I wonder what’s up with that?

      Reply
  7. Kimberly L.

    The article reads on average a $50 raise. Not so. It’s $26 not near $50.

    Reply
    • David

      This is true $50 is false information

      Reply
      • Justin G.

        Mine was $12 between SSDI and Medicaid.

        Reply
  8. Ken

    Will I receive a higher benefit if you went back to work for a couple of years

    Reply
    • T.Y.

      Hi, Ken. Thank you for reading our blog. Each year, we review the records for all working Social Security beneficiaries to see if additional earnings may increase monthly benefits. To learn more check out our Receiving Benefits While Working web page. We hope this helps.

      Reply
    • Adetokunbo D.

      No it decreases benefits

      Reply
  9. Kathy C.

    I haven’t received my SSI direct deposit yet. What’s happening?

    Reply
    • S.S.

      Hi Kathy. Thank you for reading our blog. If you did not receive your electronic payment on the scheduled pay date, you should contact your bank or financial institution first. We usually advise you to wait three (3) business days after the date you normally receive your check before calling us. We do not have access to personal records in this venue. Please continue working with your local Social Security office. If you are unable to visit the local Social Security office, you can call our toll-free number at 1-800-772-1213 (TTY 1-800-325-0778), Monday through Friday between 8:00 a.m. and 7:00 p.m. We hope this helps.

      Reply

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