After months of waiting, the cost of living adjustment for 2025 was finally made public. People who get Social Security will now know how much more they will get.
The Bureau of Labor Statistics said that in 2025, Social Security would go up by 2.5% to reflect the cost of living.
Still, there is no proof that one state will grow faster than the others. People who get Social Security benefits get the same percentage increase no matter where they live. This is because the COLA is applied the same way all over the country.
How does the cost of living adjustment impact Social Security beneficiaries?
To find the COLA, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is used. This index takes changes in inflation into account.
The exact amount for 2025 will not be known until October 10th, but the expected rise is less than in years past, like the 8.7% increase in 2023 and the 3.2% increase in 2024.
Because of this, the COLA for 2025 will not be different for each state, and Social Security benefits for retirees in every state will go up by the same amount.
So, the COLA changes your monthly benefit so that you can still buy things even though prices are going up because of inflation.
In 2024, the Social Security Administration said that the COLA for benefits in 2025 would go up by 2.5%. This was after an increase of 3.2% the previous year.
The cost-of-living adjustment (COLA) raises a person’s retirement benefit by an amount equal to the product of their benefit amount and the COLA.
But it is harder to figure out the exact number. Every payment from Social Security is based on the “primary insurance amount,” or PIA. Through a benefit formula, the PIA is then closely linked to the earnings of the main beneficiary.
How much will Social Security checks increase starting January 2025?
The 2.5% COLA increase for next year was confirmed by the Social Security Administration.
This means that people who get payments from the retirement, survivor, disability insurance (RSDI), and Supplemental Security Income (SSI) programs will start getting their higher payments in January.
Here are the different payment amounts for each program so you can see how much your Social Security checks will go up in less than two months. Each program has its own rules and requirements.
| Retirement benefits | Monthly benefits | 2.5% COLA increase | Extra income |
| On average | $1,900 | $1,948 | $48 |
| Age 62 | $2,710 | $2,778 | $68 |
| Age 67 | $3,822 | $3,918 | $96 |
| Age 70 | $4,873 | $4,995 | $122 |
| Survivor benefits | Monthly benefits | 2.5% COLA increase | Extra income |
| On average | $1,505 | $1,543 | $38 |
| Individual | $1,773 | $1,817 | $44 |
| 2 Children | $3,653 | $3,744 | $91 |
| Disability benefits | Monthly benefits | 2.5% COLA increase | Extra income |
| On average | $1,537 | $1,575 | $38 |
| Blind recipients | $2,590 | $2,655 | $65 |
| Maximum payment | $3,822 | $3,918 | $96 |
| SSI benefits | Monthly benefits | 2.5% COLA increase | Extra income |
| On average | $698 | $715 | $17 |
| Individuals | $943 | $967 | $24 |
| Couples | $1,415 | $1,450 | $35 |
| Essential person | $472 | $484 | $12 |
People who are retired will benefit the most from the 2.5% COLA increase, as you can see. They will get an extra $122 per month.
But it is important to remember that there are strict requirements that people must meet before they can get the most money from Social Security.
For example, retired workers who want the $4,873 payment must first show that they paid Social Security taxes based on their highest taxable earnings for the last 35 years and that they did not start getting benefits until they were 70 years old.
It can be hard to get this payment, so we suggest that you talk to a financial advisor or Social Security experts about your finances to improve your chances of being accepted.
