Social Security benefits to increase 2.5% in 2025

The Social Security Administration announced a 2.5% Cost-of-Living Adjustment for 2025. This means beneficiaries will see an average monthly increase of about $50 in their payments starting January 2025. The COLA helps Social Security keep up with inflation. It is determined by comparing the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year to the current year. Around 72.5 million Americans will benefit from the 2025 COLA. This includes retirees, disabled individuals, low-income adults and children, and families receiving survivor benefits. Recently, false rumors circulated about a $600 increase scheduled for June 2025. The SSA confirmed these reports are untrue and potentially part of a scam. In June 2024, the SSA received over 463,000 calls about this, overwhelming their customer service.

Cost-of-Living Adjustment for 2025

To avoid misinformation, always verify news through the official SSA website. Be cautious of unsolicited requests for personal or financial information. Report any suspicious activity to the SSA’s Office of the Inspector General. The 2025 COLA will be applied automatically starting with January payments. Beneficiaries do not need to take any action. The increase could impact taxes for some, so consulting a tax advisor is recommended. COLA amounts are calculated using a set formula based on the CPI-W. The percentage is the same for everyone and cannot be appealed. By staying informed and vigilant, Social Security recipients can ensure they receive the benefits they are due. Image Credits: Photo by Jessica Lewis 🦋 thepaintedsquare on Unsplash