Social Security Announces 2.5% Cost-of-Living Adjustment for 2025
Social Security Announces 2.5% Cost-of-Living Adjustment for 2025
The Social Security Administration (SSA) has announced a 2.5% cost-of-living adjustment (COLA) for 2025, marking the smallest increase since 2021. While inflation has decreased from its peak during the pandemic, many advocates for older Americans express concern that this modest increase may hinder U.S. retirees from maintaining their financial stability.
Starting in January, this COLA will add, on average, about $50 to each monthly benefit check.
The SSA determines its annual COLA every fall based on the “Consumer Price Index for Urban Wage Earners and Clerical Workers” (CPI-W). This index measures the average change in prices for a specific basket of goods that certain workers purchase, tracking fluctuations during the third quarter (July through September).
Impact of the 2025 COLA on Benefits
The 2.5% COLA increase will raise the average Social Security payment by approximately $50 starting in January 2025. Currently, the average monthly benefit for retirees stands at about $1,927. After the increase, this amount will rise to approximately $1,976. For married couples both receiving Social Security, their average benefit will increase from $3,014 to $3,089 per month.
Around 68 million Social Security recipients will notice these new amounts beginning with their January 2025 payments. Additionally, nearly 7.5 million individuals receiving Supplemental Security Income (SSI) will see their increased payments start on December 31, 2024. Some individuals receive both Social Security benefits and SSI, a program designed for low-income older Americans and those with disabilities.
Payment Schedule for the 2025 COLA Increase
The initial COLA increase for Social Security recipients will occur in January. Payment dates depend on birth dates:
- Individuals born between the 1st and 10th of their birth month will receive the COLA on January 8.
- Those born between the 11th and 20th will see their increase on January 15.
- Recipients born between the 21st and 31st will receive their COLA on January 22.
Moreover, individuals who began collecting Social Security before May 1997, or those receiving both Social Security and SSI, will see their COLA increase on January 3. SSI recipients will receive their new COLA with their payment on December 31, 2024.
Need Help Navigating Social Security Processes?
If you or a loved one are navigating the complexities of Social Security benefits or facing challenges related to disability claims, Nationwide Disability Law is here to help. Our experienced team understands the unique needs of individuals seeking assistance with Social Security and Supplemental Security Income (SSI).
Contact us today for a free consultation. We can guide you through the application process, advocate for your rights, and ensure you receive the benefits you deserve. Visit our website at Nationwide Disability Law or call us at 888 585 4555 to get started.
