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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Norma L.
To the poor and low income persons, there is no increase as the $30-$40 increase is more than swallowed up by the Medicare increase.
Joe P.
2.5 % COLA for 2025
AND half of the COLA is taxable!??
Equal half cup of coffee a day if you have gas to get to coffee house!
Fixed income!!!
Charles G.
This is a disgrace. Your senior citizens worked hard all their lives. The cost of health insurance and food and the utilities especially the water co is a lot more than your stupid 2.5 increase . The government should be ashamed. Matt Cartwright and Flynn should be ashamed and this will surly effect my vote
Drew N.
You know damn well inflation was higher than 2.5 %. My cost of living doubled. Get real!
Bernie S.
How much of this tiny increase will be eaten up by an increase in the cost of Part B?
MehmetYetis
2.5% about $ 50 what would you do with it? As soon as all retirees get this than state lower,reduce your food assistance just about the same amount! Just curiosity instead all this Billions of billions foreign assitance couldn’t been more helpful to us as Senior citizen to have a little better retirement in our last few years left our life’s? Thanks.
P s.
This raise doesn’t even cover the cost of rising food medical or housing what wrong with you people most of us has worked all our live for what to be homeless and do with out food. You people in our government get big health raises about every year .a 12% raise for us on ssi said would be awesome. And stop giving our money to foreign countries to fight their wars it’s time.
Drg
Can you believe but what I want to know is what are we gonna do about it? Do we all need to show up over there?
Yvette M.
What a joke! And you’re raising Medicare premiums as well. You should be ashamed of yourself. You have squandered our social security money away!!!! What raises has the as administration received? How many programs have tapped into ss that have nothing to do with what ss was intended for?????????? Shame on you and our current leaders!!!!
Heidi L.
What is ” what SS was in ten ded for?
Please respond I need your help.
John S.
Amazes me that costs can go up 100% but the liberals in the WH only think seniors can get 2.5% increase. Its because they gave all our taxpayer money to other countries and not the people that PAID IN YEARS!
Marsha
Soooo true we our united states senior citizens…united states government treat us worst than hired help…we pledge allegiance..for what…
Michael S.
What will medicare cost in 2025?
S.S.
Hi Marvin. Thank you for reading our blog. Information about Medicare changes for 2025 will be available on the Medicare page or by calling 1-800-MEDICARE (1-800-633-4227) (TTY 1-877-486-2048). For Social Security beneficiaries receiving Medicare, their new 2025 benefit amount will be available in December through the mailed COLA notice and my Social Security’s Message Center. We hope this helps.