A $50 Increase For Retirees

The average monthly check for Social Security recipients in the United States will increase by 2.5% in 2025, or approximately $50 increase. This yearly increase, also known as the Cost of Living Adjustment (COLA), helps recipients in keeping up with inflation.

Even though this year’s increase is small in comparison to previous years, it is important for retirees, SSI recipients, and other Social Security beneficiaries because it makes sure that their benefits are going to have purchasing power even though growing living expenses.

A $50 Increase For Retirees

The Bureau of Labor Statistics’ inflation data has been utilized by the SSA to calculate the annual COLA. The 2.5% COLA for 2025 indicates a significant decrease from the 3.2% adjustment in 2024, which indicates the post-pandemic decreasing of inflation rates.

This adjustment will benefit over 72.5 million people, including SSI recipients, retirees, survivors, and people with disabilities. The increase will additionally increase the maximum wages subject to Social Security taxes, from $168,600 to $176,100, starting January 1, 2025.

Social Security $50 Increase 2025

Payment Increases from the 2.5% COLA

This 2.5% increase will result in various payment increases for Social Security beneficiaries across various programs. The average monthly check for retirees will increase from $1,900 to $1,948, which is an increase of $48. The ages of 62, 67, and 70 will receive higher payments, which will be $2,778, $3,918, and $4,995, respectively.

Disabled beneficiaries will also experience an increase, with payments increasing from $1,537 to $1,575, with an additional increase of $38. The average monthly increase for SSI recipients will be $17, with individuals receiving a $24 increase and couples receiving an extra $35.

How COLA is Calculated

• Every year, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is used to calculate the COLA.
• The COLA for the following year is calculated by the Bureau of Labor Statistics by including the inflation rate from the third quarter (July through September) of each year.
• In order to avoid Social Security recipients from losing purchasing power as a result of inflation, this adjustment aims to reflect increases in the cost of goods and services.
• In order to cover the increased cost of living, COLA rises when inflation increases, as it did significantly after the COVID-19 pandemic.

2025 COLA Increase Overview

• The 2.5% COLA increase for 2025 is the lowest adjustment since 2020, when the increase was only 1.3%.
• Inflation increased during the pandemic, leading to intense COLA adjustments of 5.9% in 2022 and 8.7% in 2023, and now COLA came back to more normal levels along with inflation.
• The 2025 increase of 2.5% suggests that rising inflation has further disappeared from the moderate 3.2% adjustment in 2024.
• For beneficiaries, the adjustment this year is still crucial even though it may be less than in previous years.

Impact on Different Social Security Beneficiaries

This 2.5% COLA will impact various groups differently. The most significant rise, with checks increasing by up to $122, will be experienced by retirees who have delayed benefits until age 70 and made contributions based on their maximum taxable earnings.

However, the gains will be smaller for SSI recipients, who will receive an average of $17 more per month. For all beneficiaries (retirees, disabled individuals, survivors) the COLA is essential to make sure their income keeps up with the cost of living, helping millions maintain financial stability in 2025.

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