Every year, Social Security benefits are adjusted to reflect inflation, so recipients maintain purchasing power.
The Social Security benefits increase 2025 refers to the 2.5 % cost-of-living adjustment (COLA) that takes effect in January 2025.
What is the percentage increase for 2025?
The COLA for 2025 has been officially set at 2.5 %.
This means Social Security and Supplemental Security Income (SSI) benefits will increase by 2.5 % starting in January 2025.
How much more does that add to the average benefit?
On average, the increase equates to about $50 per month for many beneficiaries.
For example, the average benefit was about $1,927 before the increase, and it’s estimated to climb to $1,976 in January 2025.
So if you were receiving $2,000 per month before, your new benefit would increase by roughly $50 (2.5 %), to about $2,050 (ignoring rounding or deductions).
Who gets this increase?
Almost everyone receiving Social Security retirement, disability (SSDI), or survivors benefits qualifies for the 2025 benefits increase.
SSI recipients also see a 2.5 % increase, with their adjusted payments effective December 31, 2024 (for the January 2025 payment)
The increase is automatic; you do not need to apply. The Social Security Administration mails a new benefit notice each December.
Are there any beneficiaries who do not see the full increase?
Most beneficiaries see the full 2.5 %, but there are a few caveats:
- If your benefit is reduced due to Medicare Part B premiums, withholding, or taxes, your net increase may be less.
- Some recipients subject to the Government Pension Offset (GPO) or Windfall Elimination Provision (WEP) in previous years may have had lower benefits; under new rules (Social Security Fairness Act), some of those reductions are being repealed, which can affect how much you see.
- If your benefit is already being adjusted for other reasons (e.g., overpayment recovery), the net gain could be different.
When does the increase go into effect?
You begin receiving the 2025 benefits increase in January 2025.
For SSI, the increase takes effect December 31, 2024, so the January 2025 SSI check reflects the increase.
Your December 2024 payment (for SSI) and all Social Security checks in 2025 reflect the new amount.
How is the COLA calculated?
The COLA is based on the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers).
The SSA looks at the average CPI-W for July, August, and September of the current year and compares it to the same months of the prior year.
The percentage change is your COLA (rounded to the nearest tenth of a percent).
For 2025, that comparison yielded a 2.5 % increase.
What should recipients do differently now?
- Expect to see your December 2024 or January 2025 benefit notice showing the new amount.
- If you track your household budget, budget for a modest increase in Social Security income.
- If you also receive SSI, check that your payment reflects the 2025 increase.
- Keep in mind that cost increases in healthcare, housing, or medications may still outpace your Social Security raise.
- Monitor deductions (taxes, Medicare premiums) to see how much of the increase you actually net.
