The Social Security Administration has announced that Social Security benefits and Supplemental Security Income (SSI) payments for over 72.5 million Americans will increase by 2.5% in 2025. This adjustment means that, on average, Social Security retirement benefits will rise by approximately $50 per month starting in January.
Nearly 68 million Social Security beneficiaries will see the cost-of-living adjustment (COLA) take effect in January 2025, while increased payments for nearly 7.5 million individuals receiving SSI will begin on December 31, 2024. It's important to note that some recipients receive both Social Security benefits and SSI.
In addition to the COLA increase, adjustments tied to average wage growth will also take effect in January. The maximum amount of earnings subject to the Social Security tax is expected to rise to $176,100, up from $168,600.
The Social Security Administration will start notifying beneficiaries about their new benefit amounts by mail in early December. For the first time, beneficiaries will receive a newly designed and improved COLA notice, which is streamlined to one page and uses plain, personalized language to present information clearly. Individuals with a personal my Social Security account can view their COLA notice online, offering a secure and faster alternative to mail.
To access the online COLA notice, beneficiaries must have a personal my Social Security account set up by November 20. For assistance, individuals can visit www.ssa.gov/myaccount.
Additionally, information regarding Medicare changes for 2025 will be available at www.medicare.gov. Beneficiaries enrolled in Medicare can find their 2025 benefit amounts via my Social Security’s Message Center starting in late November, while those who have not opted for online messages will receive their COLA notice by mail in December.
The annual COLA is determined by the Social Security Act, which ties the adjustment to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as assessed by the Department of Labor’s Bureau of Labor Statistics.
