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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Jo M.
Will my pension have COLA to?
Gerald B.
No
Bonnie G.
bonniegantz @yahoo.com
Dee
This country should be ashamed. Raise covers the increase in Medicare. Won’t help at the grocery store as the rise in prices well exceeds 2.5%
Cliff
Agree 2.5 is worthless
Heather
I haven’t seen where Medicare premiums are going up.
Michael J.
Michael Johnson
Kathleen L.
I live in a low income elderly apartment complex owned by Trador. Every year as soon as they find out the amount of our increase they raise our rent. We can never kept up with the cost of living. Increase in food cost, medicine, gas, electricity. Some residents it takes a portion of their monthly increase, others all their increase. It’s like price gouging in my opinion.
Debbie S.
I appreciate the raise in SS benefits.
However with our Medicare Insurance premium amount increasing as well
we will not see a $60 or so increase in our pockets. When will the Medicare insurance premium stop eating away?
Paul S.
We only get a COLA increase of 2.5% for inflation but yet they are raising the Medicare premium by 6% telling us it’s because of inflation. They are not honest at all.
Evans
Why cost of price I’ve been increased because one The Capitana sweetheart just like you trying to be bulid So Let’s join hands to make something special OK let’s try and make things be order
Marti j.
Absolutely! We should all try to be nice and help each other, not so selfish and worried about who’s got the best car, house, wardrobe! I want America to get better, and that’s the only way – if the rich start giving to the poor some. I wouldn’t need more than 3 million a year to live! So why doesn’t the government put a cap on it, and the rest after that can go to lower income people and families!
Rod e.
Many people get $500 to $800 per month in social security income, 2.5 percent increase, then people wonder why some people do what they do. This is a ffff slap in the face, I won’t be surprised to see something or some movement happen in 2025
ricky s.
What good is this stupid ass raise of 2.5%. It won’t hardly buy a weeks worth of groceries. And you people thank your the smart ones. Why don’t you say you want All Old people to die.
Kenny R.
This Brother Is Keeping It Real, For Real!!!!!!, KGR…
Jaxon W.
First off I’m sure you meant ‘think’ not thank? And second, social security was never EVER ment to solely support individules, it was set up to supplement aging americans once they retired. Whats the old saying? It’s not that people plan to fail, it’s that they fail to plan….
David K.
I agree with you 100%. However, even those that planned years earlier never thought that government spending and inflation would ever reach these levels. I remember the 1970’s and early 1980’s very well. Those of us that are going to retire in the next 5-10 years should try to double our savings. Our currency is losing value every day, how sad.
Preston Y.
Especially if you live in California. For one car insurance went up 300.00 for 6 months! Homeowners insurance is going to go up again. If you’re a Civil servant retiree the FEHB is going to increase by 13%. Biden, Harris and others in the Democrat party don’t give a darn about the citizens here, can’t give us a decent raise but they can sure find the money to give Millions of illegals free Healthcare, Housing, Education, food, transportation, legal fees and other Social Services! Voters need to wake up and vote every one of them out in November at every level of government. They certainly aren’t doing anything good for the American citizens.
Tom
Your so correct.
Make America first is the only way forward.
Stop needless GOV spending here and abroad.
Angela
I’m only going to get $23.00 increase, that’s barely enough for a single meal for one person. I wish I could get a full week of groceries for that amount.
Drg
MAKE AMERICA SANE AGAIN tomatoes are 3$ a pound. Bread is $6.99. One piece of cake is $6 one half sandwich at subway is $10 a burrito in San Diego California is $18 with no rice or beans they are an extra charge.
Geena
I am 71 and trying to figure out what kind of work I can find.
J J.
You’re 71 & you are doing what? Wait… hold on, please! My mother is the same age as you & still works 3 days a week as an in-home nurse BUT she has already been doing it for over 40 years & the clients she still has are long-time clients. You should not have to be job-hunting or work-searching at 71! I’m SURE you paid into your SSI taxes well enough!
Tina A.
People who get ssi struggle every day. They only get between 600 to 943. With the price of food and rent, lights, water and the the things they need can’t buy because having to make choices on what they are going to pay in order to eat or anything else. They don’t get groceries allowance at all and snap doesn’t really help. Let’s say if you make 943 a month you only get 70 dollars in snap. You can not survive on that for a month.
Melissa B.
Right I get $943 a month and my rent is $750 I barely have enough to pay my other bills like lights ,water ,trash
Aliakbar A.
I m a resident of USA ,with social security,did not worked in USA,have no income,why can’t I receive benefits from social security?
Stan
You have to work in order to credit SS benefits. Sorry
Joe B.
Because u didn’t work here, we worked all our lives and paid into SSI. These benefits aren’t a handout, time for u to get a job!
Joan
No wonder the world is laughing at Americans! I graduated high school at age 16 and stopped working at age 81. Contributed to SS Bank for my retirement (I thought). Wrong!! America welcomes foreigners who come to America and never contribute to the system and live better than Americans who work all their lives and contribute to building America! No u cannot collect without depositing in the SS Bank! To do that u must work!’
Karen M.
Well thank you for this extra 50 dollar a month increase. That’s going to just get me 1/2 a tank of gas. Terrible how our government treats our seniors. It is unconsciouable and a real slam while we give trillions of dollars to other countries, but we can’t seem to afford to help some of the lowest income people in this United States. I see elderly people that can’t afford food, I am one of those!!
Just disgusting. What a huge slap in the face!!
Bonnie S.
It’s really sad, the government will give illegals money on a credit card but people that have worked all their lives can’t get any help not even food stamps or help with their prescription. This country has gotten their priorities mixed up for sure
Lorey B.
You’re right! The elderly is barely making do while the current administration sends billions or even trillions to oversea programs. Then they wonder why they get little support from seniors. And to make matters worse, they invite illegials into the country and cover them first before the elderly in getting housi g help. We need to rise up en mass and take back programs that will really help seniors before anyone else!
B.Blake
Wake up! People have 35-40 years to work and prepare for retirement. SS is intended to supplement retirement not be their only source.
Tony M.
Agree with you, Karen M.—-100%….
Edward O.
We don’t count till election time
Tommy E.
Apparently not even then. Illegal immigrants took place of the American citizens.