2025 Social Security COLA increases explained

The Social Security Administration (SSA) has officially announced the payment dates for the upcoming cost of living adjustment (COLA) increase. The exact percentage of the COLA will be revealed this week by the Bureau of Labor Statistics, which examines inflation data to determine the raise. This adjustment is crucial for retirees, survivors, disabled individuals, and Supplemental Security Income (SSI) recipients to maintain their purchasing power. The Senior Citizens League (TSCL) predicts a COLA increase between 2.73% and 3.2%. SSI beneficiaries will be among the first to receive the new payments, with the first check including the COLA increase arriving on December 31st due to the federal holiday on January 1st. For retirees, survivors, and disabled individuals who claimed benefits before May 1997, their payment date will be January 3rd (Friday). Those who claimed benefits after May 1997 will receive their payments on the second, third, or fourth Wednesday of January, depending on their date of birth. Social Security benefits are calculated based on factors such as age, employment history, disability type, and eligibility for Social Security Disability Insurance (SSDI).

Cost of living updates

While the official 2025 COLA increase will be announced in October, a projected 2.5% increase can estimate the potential rise in monthly benefits. Beneficiaries must stay updated with SSA announcements and consult official resources for the most accurate information on confirmed payment dates and estimated payment increases. As inflation has been easing in recent months, the 2025 COLA is expected to be more modest compared to previous years. The Senior Citizens League has decreased its forecast to 2.5% from the earlier prediction of 3.2% in May. Despite the lower forecast, analysts believe this increase would keep benefits in line with inflation. If the 2.5% increase is confirmed, it would be the smallest rise since 2021, resulting in an average raise of $48 for beneficiaries. The SSA will officially notify each recipient of their 2025 benefit amounts via mail in December, with information available online from mid-November. Given the latest data, Social Security recipients can expect a modest increase in their monthly checks, providing additional support to help make ends meet in the coming year.