Social Security beneficiaries will see a small but important boost in their monthly checks this year. Thanks to the 2.5% cost-of-living adjustment (COLA) for 2025, most recipients are receiving higher payments as prices continue to climb.
Here’s what the latest COLA increase means for your wallet.
How much are Social Security payments rising?
Starting with January 2025 payments, Social Security checks increased by 2.5%.
The average monthly retirement benefit rose from about $1,926 in 2024 to around $1,976 in 2025.
Here’s a quick look:
- Retired workers: New average payment: $1,976
- Disabled workers: New average payment: $1,535
- Survivor benefits: Varies depending on relationship and work history
While the 2.5% raise is smaller than the record-setting increases of 2022 and 2023, it still helps many seniors keep pace with rising costs.
Why was the 2025 COLA smaller?
The COLA is tied to inflation, specifically the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
In 2024, inflation rates cooled compared to previous years. Gas prices, used car costs, and food inflation all dropped, leading to a more modest adjustment for 2025.
Still, advocates warn that housing and medical costs remain much higher than they were before the pandemic, putting continued pressure on seniors.
When did beneficiaries start seeing the higher payments?
The 2025 COLA officially took effect in January 2025.
Retirees saw their first larger deposit in checks sent out during the second week of January. SSI recipients (Supplemental Security Income) received their higher payments a little earlier, with a boost included in their December 31, 2024 deposits.
How to check your new benefit amount
If you are unsure about your updated Social Security payment, you can:
- Log into your My Social Security account to view your current benefit amount.
- Review the COLA notice the SSA mailed at the end of 2024.
- Call the SSA at 1-800-772-1213 for assistance.
Your My Social Security portal also shows any Medicare Part B premium adjustments, which can impact your final deposit amount.
How to make the most of your COLA increase
While the 2.5% raise is welcome, it may not fully cover higher bills for groceries, utilities, and healthcare.
Here are a few tips to stretch your Social Security increase:
- Review your budget: Adjust for higher living costs.
- Explore benefits programs: You may qualify for help with food, housing, or medical costs.
- Delay major expenses: If possible, hold off on big purchases to avoid higher prices.
Financial advisors also recommend revisiting your savings withdrawal strategies if you rely on a mix of Social Security and retirement accounts.
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