Social Security Announces 2.5 Percent Benefit Increase for 2025
Reading Time: 2 MinutesLast 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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Pat K.
So basically a fake COLA not reflecting the Big guy in charge’s inflation fiasco?
Tara L.
I don’t think we should be paying taxes on money we put in to Social Security. So hopefully this changes.
sissy
AMEN!
Victor
My rent will be going up by $300, electricity by 50, and then gas, and food and… I worked hard and honest all my life only to have my earnings turned over to anything else
RODGER S.
GOOD THAT WE GOT AN INCREASE BUT IT DID NOT COVER THE INCREASE IN MEDICAL INSURANCE….
Michael R.
Exactly I love how yhey say by y0 bucks Mines 18 dollars but medicare increased to 185 from 174 so 8 dollars increase Wow .
David T.
Very important and helpful information . Thank you
D.D.D.
I’ve worked since I was 16yrs.old. Now I’m 74yrs.old.I retired at age 65yrs.old. Actually I’m good. I hope that Trump doesn’t do anything that will affect my benefits in a negative way. The only problem that I have is when we get a COLA increase my rent goes up.
Johnny W.
And Biden already done in term
Maxine
Social Security, a fund I have paid for since 1969, has been helpful to my disabled relative and I believe, on behalf of disabled Americans, everyone is thankful for that.
Adam P.
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Ann
The King is coming and it is definitely is not Trump. I’m talking about The Lord of Lords, The Alpha and Omega, the First and the Last, The great I Am, the Prince of Peace, The Messiah, The Savior of the world and that you can take to the bank. GOD is still in Charge of it all!!!
God bless you all who are trying to make it off what you have.
Marsha B.
You are right people forget about God he is the author and finisher alpha and omega. People act like Trump is God to me he acts like the devil. Let’s be thankful for what we do have some have less. I thank you God for all I have and all that you have done for me. I am rich in my being not money by a long shot. I’m comfortable. I pray others will be so. Thank you God for the good and the bad. God Bless America all living people. Be thankful.
Michael R.
Amen bring him on heal this broken body .