 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
percent. The COLA was 3.2 percent in 2024.
Nearly 68 million Social Security beneficiaries will see a 2.5
percent cost-of-living adjustment (COLA) beginning in January 2025.
Increased payments to nearly 7.5 million people receiving SSI will
begin on December 31, 2024. (Note: Some people receive both Social
Security benefits and SSI).
“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,” said Martin O’Malley, Commissioner
of Social Security.
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.
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.
[to top of second
column]
 |
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. To get started, visit
www.ssa.gov/myaccount.
Information about Medicare changes
for 2025 will be available at www.medicare.gov. For Social Security
beneficiaries enrolled in Medicare, the 2025 benefit amount will be
available via my Social Security's Message Center starting in late
November. Those who have not opted to receive messages online will
receive their COLA notice by mail in December.
The Social Security Act provides for how the COLA is calculated. The
Social Security Act ties the annual COLA to the increase in the
Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W) as determined by the Department of Labor’s Bureau of Labor
Statistics.
To read more, please visit www.ssa.gov/cola.
[Jack Myers
Public Affairs Specialist
Social Security Administration] |
