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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Shirley
In the state of Nevada, people are going to get an extra check in November that Have SSI however I get less than most people on With S. Why in the heck do I fall in the cracks? That’s not fair struggling every single month. The boy, they’ll be giving them immigrant some money
D W.
How about we start taxing rich people more in SS & Medicare! If you make over $176,100 a yr, nothing over that is taxed. WHY? Make 100 million a yr, you get tax SS & Medicare for that tiny amount? Take away the cap & Save SS & Medicare! Stop raising taxes so the government can send more money to other countries. How has this not been done? Why are democrats talking about how they will “save SS, & never said this? Am I crazy thinking it would save SS?
D. W.
Oh and BTW, rich people drawn over $5,000 a month in benefits! That they don’t need. And in my mind, THAT’S one of the reasons there’s no money. That & congress and those in the White House stealing from our SS. Including the current ones that in the past 3 yrs have taken MILLIONS to pay for illegals, student loan forgiveness & lord knows what else!!!
Brenda
Amen!
Jesse j.
Want to know more about my ss account. Thank you.
T.Y.
Thanks for reading our blog, Jesse. If you are not receiving Social Security benefits, you can create your personal my Social Security account to review estimates of your retirement, disability, and survivors benefits, get your Social Security statement, and check your earnings record. If you already receive benefits, you can get a benefit verification letter. If you receive Social Security benefits, you can get a replacement SSA-1099/SSA-1042S and change your address or direct deposit information also. We hope this information is helpful.
Susan
It is a mandatory retirement system not just a welfare tax. It is calculated very carefully so the more people pay in the more they get out. If they pay more into the system, we will go bankrupt paying them their benefits when they retire. Are we prepared to give people 100,00 plus in their retirement. If you paid into your company private retirement plan your entire working life, how would you feel if people started saying they saved a lot of money their entire lives and now they have a lot of money, so we need to take their retirement away. Some people save their entire lives to have a nice retirement that is their choice. Others spend more money during their lives and have nothing left for retirement. So, let’s take their money away from those who saved and sacrificed their entire lives to give it to the people who overspent during their lives. Not the American Way.
Dave R.
100% correct about the choices we make in life. Some work harder and some hardly work. Some have discipline to save and live on less, so they can supplement their income when they retire or are unable to continue working. SS benefits were never meant to be the only source of income after retirement. Responsible citizens figure out how to save regularly and budget properly.
As life expectancies have increased since 1935 (about age 62-63) people are living much longer than when SS started , so if you lived past the average life expectancy you received a small benefit . Today , with a much longer life expectancies,the retirement age to receive full benefits needs to be raised , to keep it solvent but no politicians have the courage to admit this reality ! This solution is 1 of several recommendations made annually to the Social Security Administration.
Dave R.
You are somewhat wrong regarding your cap statement. There is no cap on wages subject to Medicare. The reason Soc. Sec. has a cap is due to the fact that there is a cap on the benefits as well. It would not be fair to tax a person on their wages above the cap given that his SS benefit would not be any more than someone whos wages were at the cap.
Barbara M.
Why do they take everything away from the old poor people!!! ALWAYS!!!! THE ONES THAT WORK ALL THEIR LIVES have to suffer! BUT millions and billions go out of the country every second of EACH DAY WITHOUT THINKING TWICE!!! THERE IS SOMETHING WRONG HERE!!!!! VERY WRONG!!! OBVIOUS THERE IS MONEY for us SENIOR CITIZENS! BECAUSE MONEY IS GOING EVERYWHERE, EVERYWHERE, EXCEPT FOR THE SENIOR CITIZENS!!!!!!!!!!!!!!!!!!!!!
T. F.
I agree with you. The war in Ukraine has received over 78.5 billion since 2022.
Something is definitely wrong in the USA.
They give a 2.5 -3.0 COLA which is less than $75 a month in most cases. The cost of living with inflation goes far beyond a 3.0 adjustment.
It’s a slap in the face,to people who have worked all their lives and, after retirement can barely make ends meet.
Needless to say, I can include all the money going out to people who cross the border illegally.
But in every major city the number of homeless people has increased dramatically.
It’s shameful! No other country hands out money for wars and people coming across their borders.
Most countries take care of their citizens especially the older people.
Something needs to change and fast!
I’m a registered voter but at this point, it seems like a big waste of time.
The election is next week and I don’t have a dog in the race. Therefore, I’m not even wasting my time!
Monica M.
2.5%? Wow. So the $943 a month I get right now is going to go up to $967. I really do wish that actually paid for as much as you all think it does! The people who make the rules and policies for SSI & SSDI are delusional if they believe that’s enough to cover RENT, FOOD, CLOTHING, AND BILLS!
Not to mention that unless you’re over 65 on SSI, you don’t qualify for Medicare, therefore, you don’t qualify for the extra help from that. If you get SSI because of disability and you’re under 65, you get nothing! No Medicare, no flex card, no UCard, no NOTHING! And don’t forget that if you try to supplement your income to actually make ends meet, well then you get punished by the SSA and they mess with the income you do get!
IT’S NOT RIGHT!!!! The SSA needs to reevaluate the way they do things and actually look at how the people on SSI & SSDI truly live on the income they get.
SSA, your policies and rules are a joke and need to change! $967 doesn’t even cover rent for most places anymore. It definitely doesn’t cover Food, clothing, or other bills.
That 2.5% increase should be more like 25% EVERY YEAR! Not just once! Our income should keep up with the economy. There’s no reason why we should be struggling as much as we do! EVER!
Monica M.
I also want to add that the process you make people go through to get on SSI & SSDI is absolutely ridiculous! It should not take someone 8 years of fighting back and forth to get on SSI or SSDI! I should be on SSDI right now, but because of how long the SSA dragged their feet, I’m on SSI. And while I’m grateful for the $943 a month I do get, I should be on SSDI!
8 years of arguing with the same evidence is horrible and flat out torture!
Shirley
Get an attorney immediately and don’t wait another second they will keep that up until you get an attorney! Don’t worry about the attorney because they do a pro bono. That means you pay later after you get your first check. You see that money they take out just your money will come in your mailbox
Randall
I am seeing a trend in the comment section and correct me if I am wrong but it seems like what I am reading is the government is dropping the ball when it comes to taking care of its tax paying citizens and I would agree on that 100 percent they have been doing it for so long they can’t help there self and we vote every 4 years and put people in office that says there going to fix it and never does so we are stuck in this situation until they finally let us die and even in death they get the last kick on our dead bodies before where tossed in the grave with a 250 dollar death benefit to our husband or wife who is left to bury you God bless the u.s.a.
Brenden L.
Imagine being a Disabled Veteran, having been injured, maimed, lost a limb, lost yourself, and despite being rated at 100%, and at an age and with such disabilities that people will not hire you, and you spend 4 days a week at medical facilities or mental health facilities, and you still only get that 2.5% COLA for VA C&P and SSDI. Not that I or any Veteran are any better than a US citizen who has never served and still needs a higher adjustment, it’s just seems like nobody gives a 💩
Damien
welcome to reality and ask yourself was a fed a line of BS my whole life about the government caring or the tax payers caring? No they dont so be proud you served and rememever you served for you not the government so if you say you dont deserve more you are being nice if you didnt think you deserved more you wouldnt even bring it up. This is how life is we are all brain washed im a veteran so wake up finally and see you served for you not the government that doesnt care for you
Helen M.
Look I can’t read but I read most of that I didn’t even get my mother’s $250 when she died and there’s no way you can make it on $940 a month these days and live I mean you have to go without food you have to wear at the house between your Waters and water a lot and you can’t everybody close cuz you never get enough money this sad and they can go and take care of throw money to every other country there is but there’s thousands of people living on the streets right now because if you have any kind of a failing or anything like that you can no longer get any kind of help how do you start over with closely held against you and how can you live on 840 there’s just no way possible I have a lot of mental problems bipolar at I can’t read I have a memory problem is my biggest thing and you know y’all making everything computerized you can’t do nothing unless you’re on a computer I don’t know what this world’s coming to but people that have disabilities are never going to be able to make it I appreciate help thank you release Helen Miller I appreciate you get back in touch with me thank you bye
Amber I.
Any increase to me is a blessing. If you worked and payed in you should be able to receive your funds. What I don’t get is I know 10 people who receive SS payments that lied so they could receive funds and have never worked. It took me 7 yrs before I was approved for my benefits, meanwhile these people are receiving benefits that they NEVER worked for. Oh, and they don’t pay no bills. Just Saying… Thank you
Tiffany A.
Wow that is not much of an increase with the cost of inflation, to buy the everyday common necessities for your home I live off of $943.00 and $240.00 on snap benefits doesn’t even help. I struggle just to get by with rent, all utilities, and cable every month and I’m flat broke with not a dime to my name.
Mary B.
Isn’t Social Security benefits only to supplement your income and savings, not to totally support you. You can’t go through life spending every cent you earn and not saving and looking to the future and expect SS to provide every need you have.
David M.
2.5%. What a joke. Just one example. Insurance companies raise your premiums every year. That 2.5% is gobbled up before you get your first benefit check. 2.5% is no help towards all the remaining price increases. I was retired for five years and had to go back to work to help make ends meet. 71 years old and working at a Supermarket. I see the prices go up on everyday items. It’s a shame. I enjoy getting my check and seeing that I’m paying part of my Social Security! Most of the politicians hope us seniors die early!
Al
As a former federal law enforcement officer who had both my keees torn out on duty, following orders, denied emergency medical care by my supervisors in question were promoted for violating the law (just ask federal judge Sheyla M. Sipp about it) IN direct violation of 5 U.S.C 8020 and yea, the violators were promoted to a position of management afterwards. I am familiar with how govt rips off the taxpayer of their own money every day. If you examine how Social Security actually calculates their COLA (from the last year), nearly every month (from 2023 to the same time period in 2024) of inflation was above the rate (2.5%) for which they set the increase due the next year. The only month where the inflation rate was actually below that was Sept. 2024 (2.4%). Every other month was well above their calculation of 2.5%. If you do an actual average for the months from Sept 2023 to Sept 2024, the average is 3.130792308%. It doesn’t allow for the fact even though the inflation rate (appears) to drop (right about the time they are doing their “math”, convieniently) it does not take into effect inflation throughout the rest of the year went to 3.7% for Sept 2023 and was at 8.2% for Sept 2022 (yea, “actual math sucks that way”, must be the “new math”) and remained above (their calculation) of 2.5% (above 3.0%) until July 2024 when it dropped to 2.9% (Yea, by that time, your money has been spent and the absolute last people that want to hear about it is Social Security. Those figures came from the U.S. Labor Dept in case you were curious.
If we were to calculate “say” actual Cost of Living, in Sept 2023 my rent (in a small 1 bd apartment that has received no maintenence or upgrades) was $1485.75. In Sept 2024, it was $2291.98. Last time I checked, that WASN’T a 2.5% increase (that would have been $1522.89), bound to be the new math.
After conducting a little research (former fed in me AND watching government agencies pull the same tricks over and over again through the years), inflation regularly tends to “fluctuate” to benefit the government when the government wants it to. It “decreases” when the government is trying to figure out how much to pay out, then tends to shoot up (didn’t do the calculations throughout the history of Social Security) shortly after is announced (‘hide and watch’ next year, tell me I’m incorrect in my observations).
Still can’t afford the Medicare deductions to get anything treated so that’s what I get for working for the government. The tear in my neck keeps spreading and bleeding so I guess that will resolve itself one way or another (M4 abidextrous marksmanship qualification in 2012) that the S.S. doctors said they WOULD ‘fix’ when I was being evaluated for disability in 2021 (still waiting, don’t see it happening). Government incident, pay for it out of your own pocket. I’m used to it.
martin J.
Thank you for your service and honest assestments, may God provide for your needs. I will keep you in my prayers.
SLM
Dear Sir,
First thank you for all you’ve done and I am sorry for this entire system.
(I would add here, the ONLY way I finally received SSDI – age 44 was by contacting my State NYC reps – ONLY one actually replied but she did get my case MOVED up after 3 years before the Judge) Who was stunned when I went (gurney oxygen ect) Gov takes the $$ but GOOD luck getting it back)
Maybe there is such in the State YOU are in ie find your State Reps.
(as well my father denied VA and I got my mom to find a Rep who was retired Veteran – then ALL moved forward)
That is there job to help (some reply some send “form letters”)
I was young and on SSDI (took years and a Judge NYC) lost all MA health care (2nd hand smoke was not yet banned so the big C and all now and just came to see what the COL is (LOL LOL LOL)
I have to say is the entire thing is a ‘nightmare’.
Look up as well Medicare savings Plan (not sure exactly but YOUR Medicare is paid for)
– I have the ORIGINAL Medicare and every time certain agencies want me to “switch” I say NO NO NO NO. A mess via State companies and NOT all providers want to deal with them
– There ARE income limits and diff ones (and again since the agencies MHO are a mess – always hard to find out DSHS as well.
– Call your State rep if you can
– Search “what helps pay for Medicare deductions and a LONG list pops up) QMB, SLMB (Disabled and working is QDWI – Qualified INDIVIDUAL (helps pay Part B premiums only QI)
– Pays for part A and B and some have Rx payment plans (mine are not covered for C 30K a month but sis found some free program)
Best of LUCK.
SLM
PS. I actually logged in to both SS and Medicaire to find more info for YOU (which may or may not help)
– Depends on the State one lives in.
But look for “Medicaire Savings Programs”.
– I had to have the hospital I go to NOT allow DSHS to pay in full or my rent would go up (Public Housing) and tons of children or rent increases (with medical). Sigh
But there are all types and even medicaide (which I did nto apply for but hopital did Kadlec)
– MHO contact medicaire and ask for YOUR state who can help pay your deductions and premiums.
– It is INDEED all very confusing.
Long ago I minired in City Gov NYC Health dept (and thought to self NEVER need to reply on GOVERNMENT!!! )
Good luck – and contact your state reps for help with these agencies as well.