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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William H.
You libs have no clue what is going on in DC. Trump is the only hope the American people have for the secure operation of the Social Security System. If the democrats have their way you would have to be in your mid 70’s before getting full benefits because the system would be almost broke. Thank god for Trump and the Republicans.
Noble S.
Go back to your cult. We don’t need your opinions here. This is for useful information.
I’mahumannotalib
You repubs are loyal to a cowardly monster. He only wanted to win to stay out of prison.
Sue A.
Please don’t be uneducated and research before you write. The Republican Study Committee unveiled its budget proposal Wednesday for the next fiscal year, titled “Fiscal Sanity to Save America.” In it, GOP lawmakers call for “modest adjustments to the retirement age for future retirees to account for increases in life expectancy.” They did not specify a new age for retirement.
In addition, the plan recommends lowering benefits for the top earners.
The committee stressed its budget would not cut or delay retirements benefits for any senior in or near retirement.
The RSC, which is chaired by Rep. Kevin Hern of Oklahoma, is comprised of about 80% of GOP lawmakers serving in the House, including Speaker Mike Johnson of Louisiana.
Its budget proposals are unlikely to become law in the next year but reflect the policy priorities of an influential bloc of the Republican Party.
Hern said Social Security reform is needed to protect the program.
The Congressional Budget Office projects the Social Security trust fund will be exhausted by 2034. After then, Social Security benefits would be reduced 25% if no action is taken, according to the CBO.
“My reforms are necessary — and it’s the only plan I’ve seen that addresses insolvency,” Hern wrote in a post Thursday night on X, formerly Twitter.
The budget proposal presents two other options for protecting Social Security, both of which the committee rejects. House Republicans said approving transfers from the general fund would not make Social Security more sustainable and would lock in enormous deficit spending. And the panel concluded tax hikes on the wealthy would “fail to make Social Security solvent, and have the effect of eliminating job opportunities in the United States.”
President Joe Biden on Thursady attacked the RSC’s budget proposal as “extreme.”
“The Republican Study Committee budget shows what Republicans value,” he said. “This extreme budget will cut Medicare, Social Security, and the Affordable Care Act. It endorses a national abortion ban. The Republican budget will raise housing costs and prescription drugs costs for families. And it will shower giveaways on the wealthy and biggest corporations. Let me be clear: I will stop them.”
But Hern said Biden is refusing to address Social Security insolvency.
“We are headed directly towards an iceberg, but Joe Biden wants to stay the course!” Hern wrote on X.
Earlier this month, Biden released his own $7.3 trillion budget proposal, which seeks to protect Social Security and Medicare. The budget plan says the president would reject any proposals to cut Social Security benefits or privatize the program. It also seeks to extend solvency by increasing taxes on the wealthy.
“The President remains committed to working with the Congress to protect Medicare and Social Security for this and future generations,” Biden’s budget proposal says.
Alex Floyd, the Democratic National Committee’s rapid response director, sought to tie former President Donald Trump, the presumptive GOP nominee this year, to the RSC proposal.
“Donald Trump and MAGA Republicans in Congress are campaigning on an agenda that is so toxic with voters you’d think they were trying to lose the election,” Floyd said in a statement. “The American people want more accessible health care, more freedoms, and greater retirement security – but Donald Trump and his MAGA Minions are running to take all of that away.”
The Trump campaign, however, vowed in a statement Thursday that Trump “will continue to strongly protect Social Security and Medicare in his second term.”
“The only candidate who poses a threat to Social Security and Medicare is Joe Biden–whose mass invasion of countless millions of illegal aliens will, if they are allowed to stay, cause Social Security and Medicare to buckle and collapse,” said Karoline Leavitt, the campaign’s national press secretary. “By unleashing American energy, slashing job-killing regulations, and adopting pro-growth America First tax and trade policies, President Trump will quickly rebuild the greatest economy in history and put Social Security and Medicare on a stronger footing for generations to come.”
In an interview with CNBC last week, it initially appeared he suggested making cuts to entitlements, but his campaign later clarified he was only speaking about reducing government waste to save money.
The RSC says its overall plan would balance the federal budget in seven years, reduce spending by $16.6 trillion over 10 years and cut taxes by $5.5 trillion for individuals and families.
“Is it acceptable to have a budget that never balances, no matter how far out in time? … ” Rep. Eric Burlison, R-Mo., said during a news conference at the Capitol on Thursday. “The American people would say that’s not acceptable.”
The national debt currently stands at $34.6 trillion and has increased by $3.1 trillion over the past year.
The RSC budget proposal also would:
Convert Medicare to a “premium support model” in which traditional Medicare would complete with private plans. Beneficiaries would receive subsidies to shop for their preferred policies.
Reduce regulatory mandates on Affordable Care Act insurance providers.
Endorse the Life at Conception Act, which would give equal protection under the 14th Amendment to every life starting at fertilization.
Glenda S.
I have not received my letter from S.S.about my increase in 2025.should I have already??
Glenda S.
I have not received my letter of my cost of living raise for s.s. For 2025.
S.S.
Hi, Glenda. Thanks for reading our blog and for your question. You should be able to access your 2025 cost-of-living adjustment (COLA) notice in the Message Center of your my Social Security account. If you don’t have a my Social Security account and didn’t receive your COLA notice, you can call us at 1-800-772-1213, Monday through Friday, between 8:00 a.m. and 7:00 p.m. For more information, visit our Frequently Asked Questions. We hope this helps.
stephen b.
We haven’t received ANYTHING telling us Diddly Squat about out increase at all What Gives ???????
Germaine P.
Heavens!
FIGHT B.
*** The CPI-E NEEDS TO BE USED,
NOT THE CPI -W !!!
RETHUGLIKKKANS FOR YEARS HAVE REFUSED TO EVER FULLY FUND THE SSA TO FULLY FUNCTIONAL AND MANCHIN / SINEMA ( CLOSET RETHUGLIKKKANS ) AND VOTE AGAINST THE FILIBUSTER, VOTING RIGHTS, ANTI LABOR RIGHTS, BIG #PHARMA FOR 2 LONG.
GET GONE POLITICIAN HOES !!!
SSA IS FLATLINING AND NOW TRUMP WILL SCREW UP THE REST OF SSA WITH MORE FKN TAX CUTS FOR BILLIONAIRES
Yasuko L.
Amen Amen looking forward to that great day