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 in October 2024. 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 December 31, 2024. (Note: Some people receive both Social Security benefits and SSI).
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 you to find the information you need most. The simplified COLA notice is now only one page, uses plain and personalized language, and provides exact dates and dollar amounts of your new benefit amount and any deductions.
If you have a personal my Social Security account you can view your COLA notice online, which is secure, easy, and faster than receiving a letter in the mail. You can set up text or email alerts when there is a new message–such as your COLA notice–waiting for you in your my Social Security account.
You will need to have a personal my Social Security account by November 20 to see your 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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