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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Lorrie
Commodities are up 8.6% which what us seniors buy. So unfair for such a low raise that Medicare will take. So it’s just like not even giving us a raise but a deduction. Because we already can’t afford to eat. Thanks alot
JOHN S.
dOES NOT KEEP UP WITH INFLATION
Randy
Over the last decade it’s averaged 2.6, and with crazy inflation we only get 2.5 percent???? That’s disappointing. I guess it’s better than a sharp stick in the eye?
Heidi
Who got the sharp stick in the eye?
Someone used to say that to me almost every day and inferred that my son or someone very dear to me was blinded. I could never get an answer, also I have not been able to contact my loved ones to whom I’d ask. This sounds crazy but, I promise it’s a real dilemma for me.
If anyone knows leave the info and be anonymous if you like. Thank you. I am Heidi Pokusa.
David L.
I’m a low income senior. The owner of the mobile home park I live in has raised my lot rent $190 a month over the past 3 years. That along with how much groceries have gone up during the same time period, 2.5% doesn’t put much of a dent in it
Catherine G.
This 2.5% probably will not even cover the Medicare increase, much less the increase in food, gas and housing.
We should get at least 5%.
Just keep giving the illegals and the foreign countries that hate us all the money you can print.
This government can not be trusted.
Candy J.
I agree 💯 % with you. Plus with medicine getting more expensive and gas is like a yo-yo. I can’t work because of my health. Then they wonder why there is so much homelessness. American retirees can’t even afford rent. Our government and corporate leaders are nothing but greedy people. Our country doesn’t care about the older generation.
Linda
Also a struggling senior. Rent just went up $70. Car insurance $40. One of my medications went from $18 to $54. Another is no longer covered $201. Apparently, we are not supposed to eat.
Marty G.
COLA increase of 2.5% is not even close to what would be needed to keep up the increase in prices this year. More and more of us will be living in poverty in 2025.
melvin r.
it’s should be tax free government doesn’t know how to run anything
Vicki G.
COLA
I think that the changes you are making are really great, I look forward to getting my letter. I am also going to check-out my account, which I have had quite some time.
Thanks Social Security
Sarah H.
This food card to help people on Medicare so go to each individual that is on Medicare it should not be limited to people that only carry certain medical insurance that should not matter. I know people that has the medical insurance required and they still don’t qualify. This is false advertising.
Amy H.
What food card? I became disabled in 2017 with 4 children under 18. I go to do the thing at social security office near me and found out I was allotted $96 TOTAL for 4 children. The lady had the balls to make me sign a paper stating I would use my children’s allowance FOR my children. I laughed in her face and said, seriously???? $23/child……what exactly will that provide besides milk and bread and cheese? So here I am today just living off the cola increase each year and having to rely on MY dad for feeding and clothing and all the things for my children because THEIR dad refuses to provide and I cannot divorce because I can’t live on my SSID alone.
jonna j.
shame on you.Do you really think that small increase will help anybody. The lines at food banks are a mile long.Wake up USA.