Your Social Security Benefits for 2025: COLA Update

The Social Security Administration (SSA) has officially released its annual cost-of-living adjustment (COLA) figures for 2025. These newly issued numbers will have an impact on monthly Social Security benefits payouts for retirees, as well as recipients of Social Security disability benefits and survivor benefits, over the forthcoming year.

The COLA Change From 2024 to 2025

In 2024, monthly payments for Social Security benefits recipients bumped up slightly from the previous year, when the COLA was increased by 3.2 percent.

Come January 1, 2025, retirees are on track to see their Social Security benefits checks rise slightly once again, by 2.5 percent, or an average of about $50 per month. This will bring the average payout per month for retirees to $1,976.

COLA tends to shift annually based in part on the consumer price index. Its purpose, according to the SSA, has been to help ensure that the purchasing power of these federal benefits keeps up with inflation over time. Automatic annual cost-of-living adjustments first went into effect in 1975.

The COLA increase over the past 10 years has been about 2.6 percent on average.

Supplemental Security Income (SSI) Benefits

Recipients of Supplemental Security Income (SSI), a federal safety net program for roughly 7.5 million seniors and people with disabilities nationwide who have limited resources, will also benefit from the latest cost-of-living adjustment, starting in late December. As of 2024, the maximum monthly federal SSI payout is $943 per individual. The new maximum monthly federal SSI payout will be $967 per individual.

Notifications Coming in December

If you are one of the more than 72 million Americans who receive Social Security benefits, keep an eye on your mailbox for an envelope from the SSA, which will send out notifications beginning in December. The notice will outline for you how much you can expect to receive in your monthly check starting in 2025. Note that payouts may vary for different individuals based on numerous factors, such as your age and past work earnings.

For further information on the 2025 changes to Social Security benefits, visit the SSA fact sheet. Access your COLA notice online by logging into your my Social Security account starting in December.