To keep pace with inflation, the Social Security Administration (SSA) adjusts the amount beneficiaries receive each year. The cost-of-living adjustment (COLA) for 2025 will be announced on Oct. 10, 2024.
The Social Security increase for 2024 was 3.2%, but with inflation cooling, analysts are predicting a smaller adjustment for the new year.
Almost 68 million Americans received monthly Social Security benefits in 2024, totaling about $1.5 trillion.
More than a third of retirees say their checks are a major source of income, according to a Gallup survey from April.
What is the Social Security COLA?
Since 1975, the SSA has adjusted benefits at the beginning of each calendar year to keep up with inflation. This annual increase is calculated based on the changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Due to the post-pandemic jump in inflation, the COLA has been higher in recent years.
- 2021: 1.3%
- 2022: 5.9%
- 2023: 8.7%
- 2024: 3.2%
Sometimes benefits stay static, though it’s rare: Since being instituted in 1975, the COLA has only been 0% in 2009, 2010 and 2015.
The adjustments are intended to help seniors keep up with rising prices. The Consumer Price Index has risen 24.6% since 2021. If the adjustment for 2025 lands at 2.5%, SSA benefits will have come close to matching that, with a cumulative increase of 23.4%.
How much is the Social Security increase for 2025?
The Social Security Administration will officially announce the COLA for 2025 on Oct. 10, 2024.
The nonprofit Senior Citizens League has predicted a rise of 2.5%, as has The Center for Retirement Research at Boston College. If accurate, it will mean a more modest uptick than the 3.2% increase in 2024.
According to data from the U.S. Bureau of Labor Statistics, inflation continues to fall from its post-pandemic highs: The August 2024 Consumer Price Index report showed a 2.5% increase in average prices since August 2023—the smallest 12-month increase since February 2021.
A COLA of 2.5% would translate to an average bump of $48 in monthly Social Security benefits, raising the average check for retired workers to $1,966.
Social Security recipients will be mailed an official notice about their 2025 benefits in December. But you can access that information online in mid-November via your mySocialSecurity account.
How is the Social Security COLA calculated?
The COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which the Bureau of Labor Statistics calculates by looking at the average prices of household goods like food, housing and transportation.
The COLA for any given year is determined by the CPI-W in the third quarter of the previous year. The COLA for 2025 will be announced in October 2024, based on data from July to September.
Changes to Social Security in 2025
To qualify for Social Security retirement benefits, you must compile 40 work credits over your lifetime, with a maximum of four credits allowed each year.
Earning four credits in 2024 required making more than $6,920. That amount will increase in 2025, though by how much will not be announced until Oct. 10. (The income minimum increased in 2024 increased $90 from 2023, when it was $6,830.)
The maximum amount of annual earnings subject to the Social Security tax could also be going up. The 2024 income cap is $168,600, an increase of $8,400 from 2023.
How much is the average Social Security check?
Your specific Social Security benefits depend on a variety of factors, including your income throughout your working years and what age you start claiming benefits.
In June 2024, the average monthly Social Security benefit for retired workers was $1,918. For all recipients — including spouses, children and disabled workers — the average check was $1,781.
Half of seniors who receive Social Security count on their benefits for at least 50% of their household income, according to the SSA. A quarter rely on their check for at least 90% of their income.
Supplementing your benefits with an employer-sponsored 401(k) or an individual retirement account (IRA) can help you live more comfortably in retirement. We ranked Charles Schwab and Betterment as among some of the best IRAs.
When will I see the increase in my Social Security check?
The 2025 COLA will appear starting in benefit checks for most recipients in January 2025. When your check arrives is determined by your date of birth.
- If you were born between the first and 10th of the month, you should see the increase in the check arriving on Jan. 8, 2025.
- If you were born between the 11th and 20th of the month, expect it on Jan. 15, 2025.
- If you were born between the 21st and the end of the month, your larger check will come on Jan. 22, 2025.
Some recipients will receive the increase sooner, however.
- If you’ve been receiving Social Security benefits since before May 1997, your first check of the year will arrive on Jan. 3, 2025.
- If you receive Supplemental Security Income (SSI) benefits are typically paid on the first of the month. Since New Year’s Day is a federal holiday, though, those checks will go out on Dec. 31, 2024.
The full calendar of Social Security payment dates is available online.
When can I start collecting Social Security?
Eligible workers can begin receiving Social Security benefits at age 62. But they will get a reduced monthly payment if they don’t wait until full retirement age.
| Year of birth | Social Security full retirement age |
|---|---|
| 1943-1954 | 66 |
| 1955 | 66 and two months |
| 1956 | 66 and four months |
| 1957 | 66 and six months |
| 1958 | 66 and eight months |
| 1959 | 66 and 10 months |
| 1960 or later | 67 |