The 2.5% Social Security cost-of-living adjustment for 2025 is the lowest increase to benefits since 2021. For retirees, this amounts to about $50 per month more than last year.
While some may feel that the increase isn’t enough, many are still grateful for the boost. “It’s not keeping up with everything,” said Jim Blair, founder at NSSA Professionals and former Social Security administrator, “but it’s better than nothing.”
The latest inflation data shows a 2.8% rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is used to calculate the annual cost-of-living adjustment. However, this increase may not be enough to keep pace with everyday expenses.
For retirees looking to boost their benefits, there are two strategies they can consider: adjusting tax withholdings or asking for a Medicare premium reduction. Beneficiaries can reduce their tax withholdings by filling out Form W-4V with the Social Security Administration. However, this may result in a smaller refund next year.
Alternatively, higher-income retirees can ask to have their Medicare premiums adjusted if they’ve experienced a change in income that has reduced their ability to pay. To do this, they’ll need to complete and submit Form SSA-44 to the Social Security Administration.
Source: https://www.cnbc.com/2025/01/31/social-security-2-moves-retirees-may-make-now-to-boost-benefit-checks.html