Bad news for retirees: Medicare premiums to rise in 2025 and eat into Social Security checks

In October, the average Social Security check for a retired worker was $1,924.35. Applying the 2.5 percent cCCost-of-living adjustment (commonly referred to as the COLA), the value of the benefits will increase by $48.10, resulting in a total payment of $1,972.45.. the Part B premium will eat into the increase in benefits provided by the 2025 Cost-of-living adjustment, commonly reffered to as the COLA.

The cost of healthcare is outpacing other goods in the market, which helps explain why the two figures don’t align. In 2024, Medicare members paid $174.70 a month, and in 2025, that amount will jump to $185 a month.

How the average Social Security benefit will change in 2025

In October, the average Social Security check for a retired worker was $1,924.35. Applying the 2.5 percent COLA, the value of the benefits will increase by $48.10, resulting in a total payment of $1,972.45.

This year, after the Medicare Part B premium was subtracted, beneficiaries received a check worth $1,749.65. Next year, after the $185 premium is deducted, retired workers will receive $1,787.45—a $37 increase over their benefits this year. The good news is that the increase in the Part B premium does not eliminate the increase provided by the COLA, though it does reduce it slightly.

Calculating Your 2025 Benefits

To calculate your own 2025 benefit amount, multiply your current benefit amount by 2.5 percent. This will give you the increase to be added to your benefits. Add that number to your 2024 benefit amount to determine the value of your 2025 payments. Then subtract $185 from the 2025 amount to see what will remain after the Part B premium is deducted.