Retirees’ Social Security: If you’re a retiree wondering how much more you may receive from Social Security in 2025, you’re not alone. Every year, the Social Security Administration (SSA) announces a Cost-of-Living Adjustment (COLA) to help retirees and beneficiaries keep up with inflation—and in 2025, you’re getting a 2.5% raise.
Whether you’re already receiving benefits or planning for retirement, understanding this increase is vital. In this article, we break down what this means for your wallet, explain how it’s calculated, and offer practical advice to help you make the most of your benefits.
Retirees’ Social Security
| Feature | Details |
|---|---|
| COLA Increase for 2025 | 2.5% |
| Average Monthly Benefit (Retired Worker) | From $1,927 to $1,976 |
| Average Monthly Benefit (Retired Couple) | From $3,014 to $3,089 |
| Monthly SSI Maximum (Individual) | $967 |
| Monthly SSI Maximum (Couple) | $1,450 |
| Date Benefits Begin | January 2025 |
| Official Source | SSA COLA 2025 Page |
The 2025 Social Security COLA increase of 2.5% offers a modest yet meaningful raise to millions of Americans. While smaller than past years, it continues to serve its essential purpose: protecting your buying power in retirement.
Make sure to log in to your My Social Security account to verify your new payment and take a proactive approach by adjusting your budget and reviewing Medicare updates.
If you’re approaching retirement, remember to evaluate your Full Retirement Age, the timing of your claim, and your work history to maximize your benefits. Proper planning today can help ensure a more comfortable retirement tomorrow.
What Is the 2025 Social Security COLA?
Each year, the Social Security Administration adjusts benefits through a Cost-of-Living Adjustment (COLA) based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This helps ensure your Social Security keeps up with inflation.
In 2025, the COLA is 2.5%, marking the smallest increase since 2020, but still a meaningful raise, especially after the larger bumps of recent years (8.7% in 2023 and 3.2% in 2024).
How Much More Will You Get in 2025?
Here’s a breakdown of average monthly increases based on different benefit categories:
For Retired Workers
- 2024 Benefit: $1,927/month
- 2025 Benefit: $1,976/month
- Increase: ~$49/month
For Retired Couples (Both Receiving Benefits)
- 2024 Benefit: $3,014/month
- 2025 Benefit: $3,089/month
- Increase: ~$75/month
For Widows/Widowers
- 2024 Benefit: $1,788/month
- 2025 Benefit: $1,832/month
- Increase: ~$44/month
For Disabled Workers
- 2024 Benefit: $1,542/month
- 2025 Benefit: $1,580/month
- Increase: ~$38/month
These numbers are averages. Your actual amount may vary based on your earnings history, age, and retirement age.
What About SSI Payments?
If you receive Supplemental Security Income (SSI), you’ll also see a raise.
| Category | 2025 Federal Payment Standard |
|---|---|
| Individual | $967/month |
| Couple | $1,450/month |
| Essential Person | $484/month |
SSI benefits are paid earlier, starting December 31, 2024, due to the January 1 holiday.
When Will You See the New Amount?
You’ll receive your increased payment based on your birthday:
- 1st–10th: Paid on the second Wednesday
- 11th–20th: Paid on the third Wednesday
- 21st–31st: Paid on the fourth Wednesday
Tip: You can view your personal COLA notice through your My Social Security account.
Why Does the COLA Matter?
The COLA ensures that your purchasing power isn’t eroded by inflation. Without it, a fixed income would lose value year after year.
Even though 2.5% might seem modest, it helps offset rising costs in areas like:
- Groceries
- Utilities
- Medical expenses
- Prescription drugs
According to the Bureau of Labor Statistics, prices for everyday essentials have continued to rise, even if inflation has cooled compared to pandemic highs.
Will Medicare Premiums Affect My COLA?
Yes—Medicare Part B premiums are often deducted directly from Social Security payments. If these premiums increase, they could offset your COLA raise.
In 2024, the standard Part B premium was $174.70. The 2025 premium hasn’t been finalized, but if it rises, your take-home increase could be less than expected.
How to Prepare for the 2025 Increase
Here’s a simple guide to help you make the most of your 2025 Social Security benefits:
Step 1: Check Your Benefit Amount
Log in to your MySSA account to see your updated payment notice.
Step 2: Update Your Budget
Adjust your monthly budget to account for the extra income. Consider using the bump to:
- Pay down debt
- Cover rising medication costs
- Build emergency savings
Step 3: Review Medicare Changes
Keep an eye on your Medicare premium. A higher Part B premium could eat into your COLA.
Step 4: Beware of Scams
SSA will not call or email you to confirm your benefits. Visit the official SSA scam prevention page for safety tips.
How to Maximize Your Social Security Benefits
Understand Your Full Retirement Age (FRA)
The earlier you claim your benefits, the less you’ll receive each month. Your Full Retirement Age (FRA) is the age at which you can start receiving 100% of your Social Security benefits. For most people born after 1943, FRA is 66 or 67 years old.
If you claim before your FRA (as early as age 62), your benefits will be permanently reduced. Conversely, if you wait until after your FRA (up to age 70), you can earn delayed retirement credits that increase your monthly benefit.
Consider Working Longer
If you can afford to keep working, consider delaying Social Security until age 70. This delay results in a higher monthly benefit due to the accumulation of delayed retirement credits. For example, delaying benefits for each year between FRA and age 70 can increase your monthly benefit by 8% per year.
Understand the Impact of Your Work History
The amount you receive from Social Security depends on your work history—specifically, your 35 highest-earning years. If you have fewer than 35 years of work, the SSA will count zeroes for those years, lowering your average and thus your benefit.
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Real-World Example: A Retired Couple
Let’s look at a real-world example of a retired couple both receiving Social Security benefits:
- 2024 Benefits: $3,014/month
- 2025 Benefits: $3,089/month
- Increase: $75/month
This increase is significant when considering that inflation has driven up the costs of medications, utilities, and health insurance.
If the couple were both born before their Full Retirement Age (FRA), they could delay their benefits further and get even higher payouts by waiting until age 70.
FAQs about Retirees’ Social Security
Q: When will I get my COLA increase in 2025?
You’ll see the increased amount in your January 2025 Social Security payment. SSI recipients will receive their raise on December 31, 2024.
Q: Is everyone getting a 2.5% increase?
Yes, all Social Security and SSI beneficiaries are receiving a 2.5% COLA, but your total dollar increase depends on your current benefit amount.
Q: Will my taxes change due to the increase?
Possibly. A higher benefit may affect whether a portion of your Social Security is subject to federal income tax. Consult a tax advisor or visit IRS.gov.
Q: Can the COLA be zero?
Yes. If there’s no inflation, there’s no COLA—this happened in 2010, 2011, and 2016.
