Countdown to the 2025 COLA Deadline – What Today’s Changes Mean for Retiree Benefits

The last days before the official announcement of the cost-of-living adjustment (COLA) for Social Security benefits have arrived, and millions of recipients are eager to know how much their checks will increase. On October 10, the Social Security Administration (SSA) will release the final COLA for 2025, which determines how much monthly payments will rise based on inflation. Here’s what you need to know as the announcement nears.

COLA

Every year, Social Security benefits are adjusted to keep up with inflation, ensuring that recipients maintain their purchasing power. The Bureau of Labor Statistics calculates the COLA using data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July, August, and September. While the data for July and August is already available, the final CPI-W figure—and thus the COLA percentage—will be released on October 10.

For 2024, Social Security beneficiaries received a 3.2% increase, but for 2025, early estimates suggest a more modest COLA of 2.5%, reflecting lower inflation. While the final figure could change slightly, this estimate gives recipients a general idea of what to expect.

Projected

If the estimated 2.5% COLA becomes official, here’s how much Social Security recipients could see their payments increase in 2025:

Benefit Type	Current Payment	2.5% COLA	Additional Income
Retirement (Average)	$1,920	$1,968	$48
Age 62	$2,710	$2,778	$68
Age 67	$3,822	$3,918	$96
Age 70	$4,873	$4,995	$122
Survivor (Average)	$1,505	$1,543	$38
Individual	$1,773	$1,817	$44
2 Children	$3,653	$3,744	$91
Disability (Average)	$1,537	$1,575	$38
Blind Recipients	$2,590	$2,655	$65
Maximum Payment	$3,822	$3,918	$96
SSI (Average)	$698	$715	$17
Individuals	$943	$967	$24
Couples	$1,415	$1,450	$35
Essential Person	$472	$484	$12

While these are only estimates, they provide a useful reference point for recipients planning their finances for the upcoming year.

Medicare Part B

One wildcard that could affect your Social Security COLA is the cost of Medicare Part B. For those enrolled in both Social Security and Medicare, the Part B premium is automatically deducted from monthly payments. In 2024, the premium rose by $9.80, and if a similar increase happens for 2025, it could reduce the monthly COLA boost by around $10.

So, while you may expect a $48 increase in your monthly payment, factoring in the Medicare Part B premium might leave you with an additional $38 instead. Unfortunately, Medicare typically announces the new premium amount later in October, after the SSA releases the COLA.

Smaller COLA

Although the projected 2.5% COLA is smaller than past years, this isn’t necessarily a bad thing. A lower COLA reflects slowing inflation, which means prices for everyday goods and services aren’t rising as quickly. While you may receive a smaller boost in your Social Security payments, your overall purchasing power could remain stable—or even improve—because inflation isn’t eroding the value of your benefits as quickly.

This year’s modest COLA is the result of better control over inflation, and while it may seem like a smaller raise, it helps ensure that Social Security payments stay aligned with the cost of living.

Beneficiaries

Once the official COLA is announced on October 10, the SSA will begin processing the adjustments for 2025. Beneficiaries should stay tuned for updates from the SSA and be aware that Medicare Part B premiums will play a role in determining the final increase they see in their monthly payments.

Regardless of the final COLA percentage, the SSA’s annual adjustments ensure that Social Security payments continue to reflect the current cost of living, helping retirees, survivors, and disabled individuals manage their expenses more effectively.

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