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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Jennifer M.
Too Whom It May Concern:
Social Security Direct Deposits should not be with held. Please Check Insitutions, Banking, Return Policies and Regulations. All Social Security Checks Should be Mailed according without delay. Thank You
George
The dishonesty of our government has gotten very bad, i was supposed to get according to their statement letters they sent me at 62 was 2300.00 and 65 was 2800.00 and 67 was 3240.00 a month, i had to retire at 62 because of shoulder problems and all i recieved was 1230.00 a month , they lie all of them lie, obuma caused most of this .
Terry H.
I am Almost 73 years old and I retired. I still have to work part time. Why is our SS payments taxed since they were taxed once already. I earned that money It should not be taxed.
Jane D.
Why don’t our President give his wages to the poor. Y’all bunch of fruit loops.
Concern C.
Just sad that our taxes goes to support wars and the welfare of other citizens from other countries. While at home there is mass homelessness and borderline starvation. Prices are sky high of everything yet income remains the same. Elderly in the sunset of their lives are looking for low paying jobs. At a time where the elderly time should be there true wealth after working almost their entire lives. After investing heavily in their SS. It seems they want you to have one foot in the grave before your even eligible to receive your lifetime SS investment. Then politicians come around during election time making unkept promises. It is insane they have extremely little their own citizens while spending trillions abroad. How can we say America first if our citizens are treat 4th and 5th. Grade citizens. Who’s truly going to fight for us with actions and not mere unfulfilled promises?
Concern c.
Just sad that our taxes goes to support wars and the welfare of other citizens from other countries. While at home there is mass homelessness and borderline starvation. Prices are sky high of everything yet income remains the same. Elderly in the sunset of their lives are looking for low paying jobs. At a time where the elderly time should be there true wealth after working almost their entire lives. After investing heavily in their SS. It seems they want you to have one foot in the grave before your even eligible to receive your lifetime SS investment. Then politicians come around during election time making unkept promises. It is insane they have extremely little their own citizens while spending trillions abroad. How can we say America first if our citizens are treat 4th and 5th. Grade citizens. Who’s truly going to fight for us with actions and not mere unfulfilled promises?
Ken R.
Wish I was an illegal immigrant, maybe I could afford to live with free room, free maid service, free room service, free cell phone, free SNAP card, free transportation, free medical, free dental, free optical care — there’s a common word here — FREE. 2.5% COLA for hard working retired seniors, with near 20% inflation? Are they nuts? Give me a break. They’ve raised the premium for Medicare almost that much. Show us some mercy and just put us to sleep!
Karen G.
First of all, YOU’RE USING THE WRONG CPI FIGURES! You should be using the CIP-E not the CPI-W!!!! I am furious about this pathetic so-called COLA! This was just wrong, and I’m lobbying the House Social Security Subcommittee to make you use the CPI-E from now on. Second, I’ll be lucky if the little increase in my benefit amount will even cover the increase in my Medicare premium.
Third, many of us were forced to use our credit cards for living expenses when inflation surged at the start of the year, and many of us have maxed out our credit cards. At my age, it is unlikely that I will EVER be able to pay them off. This is totally unacceptable! What makes you think you can do this to us? Congress HAS to step in on this immediately and fix this.
Sandra
Really??? How generous is that….lol what a joke
William
Well, you could always pray for God to remove all the crooked politicians and Congress members. You might have a better chance of that then to get a better raise.