If you rely on Social Security benefits, expect a modest increase in your monthly payments starting in 2025.
The Social Security Administration (SSA) is currently finalizing its cost-of-living adjustment (COLA), which is based on inflation trends, specifically the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
How much could the average payment be in 2025?
COLA is an annual adjustment to Social Security benefits that helps recipients keep up with inflation.
It’s calculated based on the average increase in the CPI-W from the third quarter of the previous year compared to the same period this year.
In July and August 2024, the CPI-W rose by 2.9% and 2.4%, respectively, indicating a relatively modest inflation trend for 2025.
While we’re still waiting for September’s data, experts are estimating a COLA between 2.5% and 2.6% for 2025, which is lower than the 3.2% increase seen for 2024.
The cooling inflation trend suggests smaller benefit increases for retirees, survivors, and those receiving disability insurance.
To give you an idea of what these numbers mean for your Social Security payments, here’s a breakdown of estimated increases for various types of beneficiaries:
- Retirees: The average retired worker’s monthly benefit in August 2024 was about $1,920. With a 2.5% COLA, that could increase by approximately $48, bringing the monthly payment to around $1,968 in 2025.
- Retired couples: Couples receiving benefits together could see their monthly check increase from $3,840 to around $3,937, a jump of about $96.
- Disability recipients: Those on Social Security Disability Insurance (SSDI) could see their average payment rise from $1,540 to approximately $1,578, an increase of about $38.50.
- Survivors: A widow or widower receiving survivor benefits could expect their average payment to go up from $1,784 to about $1,829, a $45 boost.
While these figures provide a good estimate, keep in mind that individual benefits may vary slightly based on your personal situation and the final COLA percentage.
Once the SSA announces the official COLA, you can calculate your new monthly benefit by applying the percentage increase to your current payment.
If you’d rather wait for official confirmation, the SSA will send personalized notices in December, and you can check your updated benefits via your my Social Security account.