With the cost-of-living adjustment (COLA) set to rise by 2.5% in 2025, Social Security beneficiaries can expect a modest increase in their monthly benefits. This change reflects cooling inflation, a factor that moderates the extent of the annual COLA increase. Although the boost in Social Security benefits is smaller than the 3.2% adjustment seen at the start of 2024, the impact of lower inflation rates could mean fewer rising expenses, offsetting the need for a larger adjustment.
When Will the 2025 COLA Be Deposited?
Social Security beneficiaries will see their first adjusted payments in January 2025. The payment dates will follow the Social Security Administration’s schedule, determined by the beneficiary’s date of birth:
- Born between the 1st and 10th of any month: Payment on January 8, 2025
- Born between the 11th and 20th of any month: Payment on January 15, 2025
- Born between the 21st and end of the month: Payment on January 22, 2025
Once beneficiaries receive their first payment based on this schedule, all future 2025 payments will follow the same day pattern each month, providing predictability for those on a fixed income.
How Much Will Benefits Increase?
The 2.5% COLA increase means that, on average, Social Security recipients will see their monthly checks rise by approximately $49. This increase applies to recipients of Retirement, Survivor, Disability, and Supplemental Security Income (SSI) benefits, but individual adjustments will vary based on benefit type and amount. It’s also worth noting that for seniors who are enrolled in Medicare Part B, increased Medicare premiums could reduce the net gain from the COLA adjustment.
Detailed 2025 Social Security Payment Increases
The following tables outline the expected new benefit amounts for Social Security recipients in each program category after the 2.5% COLA increase.
| Retirement Benefits | Monthly Checks (2024) | Monthly Checks (2025) | 2.5% COLA Increase |
|---|---|---|---|
| On Average | $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 |
| Survivor Benefits | Monthly Checks (2024) | Monthly Checks (2025) | 2.5% COLA Increase |
|---|---|---|---|
| On Average | $1,505 | $1,543 | $38 |
| Individual | $1,773 | $1,817 | $44 |
| Two Children | $3,653 | $3,744 | $91 |
| Disability Benefits | Monthly Checks (2024) | Monthly Checks (2025) | 2.5% COLA Increase |
|---|---|---|---|
| On Average | $1,537 | $1,575 | $38 |
| Blind Recipients | $2,590 | $2,655 | $65 |
| Maximum Payment | $3,822 | $3,918 | $96 |
| SSI Benefits | Monthly Checks (2024) | Monthly Checks (2025) | 2.5% COLA Increase |
|---|---|---|---|
| On Average | $698 | $715 | $17 |
| Individuals | $943 | $967 | $24 |
| Couples | $1,415 | $1,450 | $35 |
| Essential Person | $472 | $484 | $12 |
Considering Medicare Part B Premiums
For Social Security beneficiaries enrolled in Medicare Part B, monthly premiums are deducted directly from their benefits. If Medicare Part B premiums rise in 2025, the net increase in Social Security income after the COLA adjustment could be smaller than expected. As a result, the anticipated extra income might fall short of covering all increased living costs, especially for those relying solely on Social Security.
Supplementing Income to Keep Up with Rising Costs
Beneficiaries concerned about maintaining financial stability may consider supplementing their income through part-time work or gig economy opportunities. Engaging in a few extra hours each week can help cover the gap that may remain after the COLA adjustment, especially in light of any potential increase in Medicare premiums or other rising costs. For those with the flexibility to pursue extra work, this option could add essential income and help maintain financial confidence in 2025.
Why is the 2025 COLA lower than the previous year’s increase?
The COLA is linked to inflation trends, which have moderated recently. With inflation lower than in previous years, the COLA percentage also decreased accordingly.
When can I expect my first Social Security check with the new COLA?
Your first 2025 payment with the 2.5% increase will arrive based on your birth date in early January. The schedule is January 8, January 15, or January 22, depending on your date of birth.
How will Medicare premiums affect my Social Security increase?
If Medicare Part B premiums increase, this will reduce the net gain from the 2025 COLA adjustment, as premiums are deducted directly from Social Security benefits.
