Social Security benefits and Supplemental Security Income (SSI) payments for more than 72.5 mn 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 COLA increase has averaged about 2.6%. The COLA was 3.2% in 2024.
Nearly 68 mn Social Security beneficiaries will see a 2.5% cost-of-living adjustment (COLA) beginning in January 2025. Increased payments to nearly 7.5 mn people receiving SSI will begin on December 31, 2024.
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.
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
Martin O’Malley, Commissioner of Social Security
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.