If you’re receiving Social Security benefits, the upcoming changes in 2025 are something you’ll want to stay on top of. As of October 10, 2024, the Social Security Administration (SSA) will announce several important updates, particularly concerning the cost-of-living adjustment (COLA) for 2025.
The Bureau of Labor Statistics (BLS) will release September inflation data on that day, which will determine the size of next year’s COLA. These changes directly impact retirees, survivors, disabled individuals, and Supplemental Security Income (SSI) beneficiaries. Here’s what you need to know to stay ahead.
COLA
A key aspect of the SSA’s announcement is the COLA, which ensures that Social Security benefits keep up with inflation. While the exact figure isn’t yet confirmed, estimates suggest a 2.5% increase for 2025. This potential boost could translate into a modest rise in monthly checks. For comparison, the COLA was 3.2% in 2024 and a much larger 8.7% in 2023, reflecting inflation trends.
By calculating COLA based on the Consumer Price Index for Urban and Clerical Workers (CPI-W), the SSA aims to adjust benefits to reflect the cost of living. The September inflation report will offer the final numbers, but retirees should prepare for a likely $48 monthly increase on average.
Benefits
If you’re a retiree, your monthly check is likely to go up by an average of $48 with the 2.5% COLA increase. However, if you retire at 62, 67, or 70, the extra income may be significantly higher. For example, a 70-year-old retiree could see an additional $122 per month.
| Retirement Age | Current Benefit | 2.5% COLA | Additional Income |
|---|---|---|---|
| Average Retiree | $1,900 | $1,948 | $48 |
| Age 62 | $2,710 | $2,778 | $68 |
| Age 67 | $3,822 | $3,918 | $96 |
| Age 70 | $4,873 | $4,995 | $122 |
This bump may seem small, but it’s an important step in making sure your purchasing power stays in line with rising living costs.
Disability Benefits
For survivors, the 2.5% increase also provides a meaningful boost. On average, a survivor receiving $1,505 per month will see an extra $38. A family with two children, for instance, could receive $91 more each month.
Disability benefits are similarly poised for a COLA adjustment. The average recipient will likely get an extra $38 a month, while blind recipients and those receiving maximum payments could enjoy up to $96 more.
| Survivor Benefits | Current Benefit | 2.5% COLA | Additional Income |
|---|---|---|---|
| Average Survivor | $1,505 | $1,543 | $38 |
| Individual | $1,773 | $1,817 | $44 |
| 2 Children | $3,653 | $3,744 | $91 |
| Disability Benefits | Current Benefit | 2.5% COLA | Additional Income |
|---|---|---|---|
| Average Recipient | $1,537 | $1,575 | $38 |
| Blind Recipient | $2,590 | $2,655 | $65 |
| Maximum Payment | $3,822 | $3,918 | $96 |
Boost
Supplemental Security Income (SSI) recipients will also get a bump, but the increases here are smaller. For individuals, the monthly check could rise by $24, while couples may receive an additional $35 per month. The “essential person” category sees an increase of about $12.
| SSI Benefits | Current Benefit | 2.5% COLA | Additional Income |
|---|---|---|---|
| Average Recipient | $698 | $715 | $17 |
| Individuals | $943 | $967 | $24 |
| Couples | $1,415 | $1,450 | $35 |
| Essential Person | $472 | $484 | $12 |
Steps to Take
Before these changes kick in, there are a few critical steps retirees and beneficiaries need to take. First, it’s essential to keep your personal information up to date with the SSA. Changes to your address, bank account, or marital status need to be reported promptly. This ensures that you won’t miss out on the right benefits or face unnecessary delays.
Additionally, if you’ve recently applied for benefits and wish to cancel your application, you have a 12-month window to do so. It’s also important to know the tax implications of your Social Security income—many beneficiaries don’t realize that a portion of their benefits may be taxable, depending on their total income.
Lastly, make sure to monitor SSA announcements. The October 10 report will not only bring news of the 2025 COLA, but also other key updates that could impact your benefits.
As 2025 approaches, these updates highlight the importance of staying informed. Even small adjustments, like a $48 increase per month, can add up over time, helping you keep pace with rising costs. Be sure to review your information with the SSA and stay tuned for the announcements in October.
FAQs
How much will Social Security checks increase in 2025?
Estimates suggest a 2.5% COLA increase in 2025, about $48 extra monthly.
What determines the annual COLA?
The COLA is based on the Consumer Price Index for Urban and Clerical Workers (CPI-W).
When will the 2025 COLA be announced?
The exact COLA will be revealed on October 10, 2024.
Do survivors and disabled people also get a COLA boost?
Yes, survivors and disabled beneficiaries will receive the 2.5% increase.
How do I update my information with the SSA?
You can update your info online through your SSA account or by contacting the SSA directly.
