Social Security 2025 COLA: Here is what the percentage increase means for you

You may be wondering how the 2025 Social Security cost of living adjustment (COLA) will affect you in the coming year as the year comes to a close.

Social Security said back in October that it would raise the COLA by 2.5% in 2025. More than 72.5 million people nationwide will get a $50 increase in their monthly Social Security check by January 2025 at the latest, according to a written statement, even if the percentage change is less than that of 2024.

According to Social Security Commissioner Martin O. Malley, tens of millions of Americans will benefit from a rise in 2025 in Social Security benefits and SSI [Supplemental Security Income] payments, which will help them keep up with spending even as inflation has begun to slow down.

Beginning in January 2025, a 2.5% cost-of-living adjustment (COLA) will be applied to over 68 million Social Security recipients. Beginning on December 31, 2024, roughly 7.5 million SSI recipients will receive increased payouts.The statement said (Note: Some people receive both SSI and Social Security income).

The COLA this year was 3.2%, while the 2025 amount is just slightly less than the 2.6% average COLA update.

Additionally, recipients will receive an updated and redesigned COLA notice that makes it simpler for clients to locate the information they use most. The streamlined COLA notice is now just one page long, contains precise dates and dollar amounts of the individual’s new benefit amount and any deductions, and is written in simple, personalized language.

Furthermore, the average salary that is subject to Social Security taxes will increase in 2025; if your 2025 income is less than or equal to $176,100, you will be liable for the tax. The tax-adjusted wage in 2024 was $168,600.

Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!