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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Michael D.
N IF I PASS WILL MY GET MY SS PAYMENT EVEN IF NOT OF AGE I AM 68 SHE IS 55 WHAT HAPPENS
Lisa
I’m barely making it on what I get it’s almost impossible to keep up with my bills plus I have to buy atleast 300 more dollars on top of what they give me. I’m on SSI I don’t get enough to pay my bills and buy groceries. So I have to starve so I can make sure my bills are paid. They go on vacation all the time. They are on vacation more than they are in the Whitehouse. I’m on SSI and it’s not enough to live on. Do you think they care about us, the people on SSI are screwed. Plan and simple. A whole 50.00 dollars, how is that little bit of money supposed to help me???¿???
Brian S.
My question was not even answered in this article, it must be an AI answering to people. I asked if the office will be opened today? And I got no answer! I have to drive almost 40 miles to get there. I still don know if they are opened! It Columbus Day!
Brian
Yes. It is closed. Federal holiday.
Brian S.
My question was not even answered in this article, it must be an AI answering to people. I asked if the office will be opened today? And I got no answer! I have to drive almost 40 miles to get there. I still don know if they are opened!
Jason D.
What’s the point in making a comment when you’re being honest and told what you can and cannot say about things that may be sensitive to some who don’t want to face the Truth about how we got here and EXACTLY WHO is responsible for what you are going through. Pull yourself up by your bootstraps like you told some other people to do, remember that, that’s what you said!
Angela P.
Plaisance Angela421@gmail.com
Pam.M
Big deal 2.5% The raise I get will be taken for Medicare. Not nearly enough to keep up with inflation.
Angela P.
plaisanceangie210@gmail.com
Dee
This is the truth cost of rent an mortgage is ridiculous..They know they wrong.
Jerri G.
I receive SSDI and it’s sad that I cannot live on what I receive. I’ve worked since the age of 14 years old and had to go on disability in 2011.I am now having to swallow my pride and had to apply for food stamps and every other assistance I can get, meanwhile, the illegals are receiving money for everything free. The government doesn’t care about because they’re all making the big bucks and insurance for life. I would love to see them live on what they expect us to live on…it’s sad!!
Andrew
YOU NAILED THAT ONE!!!
Ginger k.
With prices on the rise. It will be welcomed.
Jeff
I can tell you for certain that inflation has not eased any here on planet earth. Why is it below the last decade average when prices had tripled?
Dana
What a joke this increase is. Every increase barely covers the increased cost for Supplemental Insurance. This whole system is illogical. Not only do you not get credit for the entire time you earned, what happens to all the SS match dollars that companies have to pay for each employee? There is a huge population that never maxes out on SS taxes. The level of income is still unrealistic in this day and age. So you pay until you retire or die on your $30,000 per year you pay taxes on but people who make the max plus stop paying. What happens to all the taxes that are paid in but you die before you can collect them?