WELFARE
The big COLA increase for Social Security payments coming in 2025
The cost of living adjustment for 2025 has been released, promising increases to most Social Security payments.
The Social Security Cost-of-Living Adjustment (COLA) for 2025 is has been released, with an increase of 2.5% for all people receiving Social Security benefits. More than 71 million Americans will be affected by the sweeping change.
The increase is lower than recent years, such as the 8.7% adjustment in 2023 and the 3.2% in 2024. Therefore, retirees in all states will experience the same percentage increase in their Social Security benefits, and no state-specific variations are expected in the COLA for 2025.
How the COLA is determined
The COLA is determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and reflects changes in inflation. It uses data from the third quarter of one year to the third quarter of the following year. This index is determined by the Bureau of Labor Statistics in the Department of Labor.
How the COLA is applied
The COLA is applied uniformly to Social Security benefits nationwide, meaning all beneficiaries receive the same percentage increase regardless of their state of residence.
Full list of welfare programmes affected by the COLA
- Social Security
- Supplemental Security Income (SSI)
- Social Security Disability Insurance (SSDI)
- Supplemental Nutrition Assistance Program (SNAP)
- Medicare
- Low Income Home Energy Assistance Program (LIHEAP)
The first checks that will be affected by the change will be in January of 2025.