The 2025 Social Security cost-of-living adjustment (COLA) increase is just around the corner, bringing a 2.5% boost to monthly checks for over 72 million Americans receiving Social Security and Supplemental Security Income. While this may seem like a small increase compared to previous years’ boosts of 8.7% in 2023 or 3.2% in 2024, it’s still a welcome change for those relying on these benefits.
The COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and aims to adjust benefits annually to account for inflation. The increase will result in an average monthly benefit raise of around $48 per month, affecting beneficiaries across all four programs: Social Security, Supplemental Security Income, Medicare, and the Supplemental Nutrition Assistance Program.
To prepare for the new COLA, beneficiaries can expect a notification from the Social Security Administration in December, detailing the adjustment. Those who have signed up for My Social Security will receive this information directly through their account’s Message Center.
While some may be disappointed by the smaller increase compared to previous years, it’s essential to note that this change reflects cooling inflation rates. The Senior Citizens League, a nonpartisan advocacy group for older adults, had predicted a similar 2.5% COLA increase and highlighted the need to adjust the calculation method to better reflect seniors’ changing costs.
For those concerned about their Social Security benefits or seeking more information on how to apply for Supplemental Security Income, there are various resources available, including expert guidance and online tools.
Source: https://www.cnet.com/personal-finance/social-security-2025-heres-what-the-cola-increase-means-for-your-wallet