2025 Social Security Cost of Living Adjustment (COLA) Announcement

 

2.5% Increase for Social Security Recipients

The Social Security Administration has announced a 2.5% cost of living adjustment (COLA) for 2025, the smallest increase in four years. This adjustment reflects the decline in inflation.

Key Changes for 2025

- Average Social Security payment increases from $1,907 to $1,955 per month (a $48 increase)

- Maximum benefit increases from $4,873 to $4,995 per month (a $122 increase)

- Taxable maximum wage increases from $168,600 to $176,100

Accessing Your COLA Notice

Individuals with a personal my Social Security account can view their COLA notice online starting in late November. To access your notice:

1. Log in to view your COLA notice November 20

 2. Set up text or email alerts for new messages

Medicare Information

Information about Medicare changes for 2025 will be available at (link unavailable) For Social Security beneficiaries enrolled in Medicare, the 2025 benefit amount will be available via my Social Security's Message Center starting in late November.

COLA Calculation

The Social Security Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Department of Labor's Bureau of Labor Statistics.

Important Dates

- November 20: Deadline to create a my Social Security account to view COLA notice online

- Late November: COLA notices available online

- December: COLA notices mailed to beneficiaries who do not opt for online delivery

Beneficiary Impact

More than 72 million people currently receive Social Security benefits and Supplemental Security Income payments. The 2025 COLA increase will provide a modest boost to their monthly payments.