Social Security benefits and Supplemental Security Income (SSI) payments for more than
72.5 million Americans will increase 2.5 percent 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 COLA increase has averaged about 2.6 percent. The COLA was
3.2 percent in 2024.
Nearly 68 million Social Security beneficiaries will see a 2.5 percent cost-of-living
adjustment (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.
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.
To view the release: PressRls.COLA2025
To view the fact sheet on the cost of living information: FactSht.COLA2025 2.5
Para ver el comunicado en español: SP-PressRls.COLA2025
Para ver la hoja informativa sobre el costo de vida en español: SP-FactSheet-2.5-COLA2025
