Social Security: COLA adjustment in 2025 could bring bad news for retirees: All you need to know
The increase in Social Security payments could be lower in 2025 due to a dip in the cost of living adjustment. Here’s what beneficiaries need to know.
Millions of Americans receive monthly Social Security payments, with most benefits going to retired workers. However, people with certain disabilities and survivors are also eligible thanks to Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI).
The distribution of checks is carried out monthly according to the date of birth of the beneficiaries, with the exception of workers who retired before May 1997 and SSI recipients, who receive the money at the beginning of the month, regardless of their day of birth.
READ ALSO: End of year SSA payment dates
The exact amount received also depends on the personal situation of each recipient. The SSA has an official table of approximate payments.
In 2024, the average amount for a retired individual is $1,907, while couples who file taxes jointly can receive up to $3,303. The estimate for SSI beneficiaries is $943 per month for individuals and $1,415 for couples. These amounts increase annually due to the cost of living adjustment (COLA), which serves to align social security payments with inflation. In 2024, the increase in COLA was 3.2%, but in 2025, this adjustment could be smaller.
READ ALSO: $943 direct payment on August 1: who gets it?
Social Security: COLA adjustment in 2025 brings bad news for retirees: All you need to know
The increase in the COLA is calculated based on the annual increase in the Consumer Price Index for Salaried Workers in Urban Areas and Administrative Workers or CPI-W.
To determine this, SSA compares the CPI-W for the third quarter of the previous year with the CPI-W for the third quarter of the current year. The difference between the two will be the equivalent of the increase in the COLA.
Since inflation has decreased in the past year, the Senior Citizens League, a non-partisan organization that works for the rights and benefits of seniors and retirees, projects that the COLA increase for 2025 will be 2.57%, which is significantly less than the previous year’s increase of 3.2%