As the announcement of the 2025 Social Security cost-of-living adjustment (COLA) approaches, anticipation is building about its impact on benefits, including those for spouses.
The Social Security Administration (SSA) will reveal the official 2025 COLA in October, but early projections suggest a smaller increase compared to previous years. Experts predict a 2.63% hike, significantly less than the 3.2% increase in 2024 and the 8.7% surge in 2022. This adjustment, based on third-quarter inflation data, will affect both retired workers and those receiving spousal benefits.
Spouses who qualify for Social Security benefits based on their partner’s earnings will see a COLA boost in 2025. While spousal benefits are generally lower than retirement benefits, the increase is still significant. For instance, with a projected 2.63% COLA, the average retired worker receiving $1,918 per month as of June 2024 would see an increase of about $50 monthly. Meanwhile, those receiving spousal benefits, averaging $911 per month, can expect an approximate $24 increase.
The COLA adjustment applies to a recipient’s primary insurance amount (PIA), the benefit amount received at full retirement age. This adjustment also extends to spousal, survivor, and disability benefits. While the COLA provides a welcome boost, Medicare premiums deducted from Social Security checks and other factors can affect the net increase beneficiaries see. Beneficiaries should start planning their budgets now, considering additional income sources if the COLA proves insufficient to cover living expenses.
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