Social Security (SS) benefits and Supplemental Security Income (SSI) payments for more than 72.5 million Americans will increase 2.5% in 2025. On average, Social Security retirement benefits will increase by about $50 per month for single recipients, $75 for couples.
Nearly 68 million SS beneficiaries will see the 2.5% Cost of Living Adjustment (COLA) increase beginning in January 2025. Increased payments to nearly 7.5 million people receiving SSI began on Dec. 31, 2024 (some receive both SS and SSI).
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 from $168,600 to $176,100.
“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,” says Social Security Commissioner Martin O’Malley.
Over the last decade, the COLA increase has averaged about 2.6%. The COLA was 3.2% in 2024 and at a record high at 8.7% in 2023, due to high inflation following the pandemic.
Annual inflation rose 3.2% in October 2024 (when the Bureau of Labor Statistics calculates the Consumer Price Index (CPI) — actually, a subset CPI called the consumer price index for urban wage earners and clerical workers (CPI-W), which measures the price changes for a particular set of goods, which is used to calculate the COLA.
Although the COLA is designed to keep payments in line with inflation, Medicare costs are not included in the CPI-W used to determine the COLA. Therefore, Medicare Part B premiums have been rising faster than COLA for years, including 2025, according to the Centers for Medicare and Medicaid Services, with premiums outpacing both the Social Security COLA and inflation. From 2005 to 2024, Part B premiums increased by an average of 5.5% per year, while COLAs averaged less than half that rate at just 2.6%.
In 2025, the monthly Part B premium for enrollees will rise by $10.30 (a 5.9% increase), while the COLA adjustment increase is only 2.5%, eroding away a part of the $50 SS increase. This conundrum continues to affect seniors who are concerned about how they’ll survive if SS continues to fail to keep up with the cost of living.
For more SSA information, call 7am–5pm, Mon–Fri:
1-800-772-1213 (toll free) | socialsecurity.gov
Your COLA Notice
Individuals who have a personal my Social Security account can view their COLA notice online, which is
secure and faster than receiving a letter in the mail. Users can also receive text or email alerts when there is
a new message waiting for them, including a COLA notice. Set up a my Social Security account at ssa.gov/myaccount.
SSA ONLINE SERVICE HOURS
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SSA COLA: ssa.gov/cola
ssa.gov/news/press/factsheets/colafacts2025.pdf
SSA Full Retirement Age Chart:
ssa.gov/benefits/retirement/planner/agereduction.html
Medicare & You 2025:
publications/10050-medicare-and-you.pdf
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