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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Ann H.
That gives me a whopping $35/month raise. With that I can buy 1lb ground beef, cheese, small bottle cough medicine, bag of apples, 1 dozen eggs, 1 loaf bread, 1 pkg toilet paper. This does not begin to cover my car n house insurance increase, utility increases, gasoline increase, doctor visits and/or critical medical tests increase, prescription glasses increase. So much money going out of the country, and its citizens get thrown a bone with no meat on it. What raises were given to our politicians this year? I’m sure you’re too embarrassed to answer that.
Teisha C.
This is entirely unreasonable. The cost of living is way higher than this. Even when I was on active duty in the military, they provided us with a better cost of living allowance. This needs to change. We require an increase in our social security benefits. We won’t be able to cope with the upcoming economic rises without a better boost.
John Q.
2.5 doesn’t help much considering prices of everything, Im curious what is the % of there wages and government officials were probably more than 2.5 %
Jo
I can’t believe the state and the companies that we have to deal with electrical, water, groceries and I live in a mobile home where the state lets them raise the rent as high as they want to and what we’re getting our raises don’t even cover what this company is raising our rent you’re giving me $40 and they’re raising my rent $75 I’m going to end up losing my home the only thing I have. But I know that doesn’t matter to you up there cuz you all live high on the hog and you could care less about anybody else especially people trying to make it on low income.
Joseph
Please make it clear that SS COLA’S are 50% federally taxed!
EXAMPLE:
Social security is taxable by 50%
If you get a 2025 SS COLA of $50, $25 is taxeable!
So, the Feds get 50% of your COLA about a Can of Coke a Cola!!
What a rip off!!
A single person 🧍 that pays into SS after working 40 years should pass away…. Where does his money 💰 go???
Hell????
Dan T.
How much is the Medicare deduction going up in 2025? They give you 2.5% cost of living increase and take 5% cost of staying alive away. A net loss of benefits. Politicians are paid too much to worry about those who live on SS benefits.
Pam
From what I understand medicare will go from 174 to 185. So much for a raise.
Linda M.
There is no way that the cost of living is 3.2% for 2024 so far unless food, housing, medical, and transportation are no longer part of the computation. 2.5% is a pathetic disappointment.
Carmin H.
My insurance costs on home and auto have increased 40-50% as well as groceries up well over 10-15%. The 2.5% won’t do much of anything.
Terry
2.5% COLA when inflation is well over 20%. I would ask how do they sleep at night but I know they count the millions of dollars they get while occupying Congress. This country is in a downward spiral. I can only hope that people do their own research and vote accordingly.
James I.
2.5 %. What a slap in the face. Totally unacceptable when my water bill has tripled in the past 2 years. All other utilities have gone up over 6%. Corporations are giving employees raises of up to 15 – 25%. I am 71 yrs. old fighting cancer. I cannot work. You don’t even want to hear about my medical bills. Plus as a veteran, I get no help from the V.A. sad, sad sad.
Mary L.
James I agree my husband has lung cancer ,on oxygen 24/7. Bills are rising faster than we can pay. But you know the damn government doesn’t care about us older citizens as long as they get their money….sad sad sad for older folks
SUSAN W.
GOD Bless you and your husband!
NSCLC Warrior here!
Medical bills will kill I think this is what the gubment wants!
Col P.
Same here.if we can get rid of the old system and replace it with something new it would help .