According to the Social Security Administration’s announcement on Thursday, Social Security benefits and Supplemental Security Income (SSI) payments will witness a 2.5% increase in 2025, impacting more than 72.5 million individuals across the U.S. and Puerto Rico.
On average, recipients of Social Security retirement benefits can expect an increase exceeding $50 monthly starting in January.
Over the last ten years, the average cost-of-living adjustment (COLA) has been approximately 2.6%, with the COLA for 2024 set at 3.2%.
About 68 million Social Security recipients will benefit from a 2.5% COLA adjustment beginning in January, while nearly 7.5 million SSI recipients will see an increase in payments starting December 31 of this year. Some individuals receive both Social Security and SSI benefits.
“The forthcoming increase in Social Security benefits and SSI payments in 2025 will assist millions in managing expenses as inflation trends downwards,” stated Social Security Commissioner Martin O’Malley.
Additionally, some annual adjustments are based on rising average wages, resulting in an increase of the maximum earnings subject to Social Security tax (taxable maximum) from $168,600 to $176,100.
In early December, Social Security will start mailing notifications to individuals regarding their new benefit amounts.
