Each year, Social Security beneficiaries typically receive an increase in benefits due to Social Secuirty’s cost-of-living adjustment (COLA). Beneficiaries will receive a 2.5 percent increase in Social Security benefits in 2025.
The average Social Security monthly benefit for retirees was about $1,907 in 2024. In 2025, the 2.5 percent increase will provide an additional $48 per month for the average Social Security retiree. Not only will retirement benefits increase because of the COLA adjustment, but so will Social Security Disability Insurance (SSDI) benefits as well as Supplemental Security Income (SSI) benefits at the same rate.
The 2025 COLA increase is less than the 3.2 percent increase in 2023. Social Security’s annual COLA adjustment is based on the Consumer Price Index for Urban Earners and Clerical Workers (CPI-W), which is a measure of inflation. Back in June 2022 inflation was at 9.1 percent, which would have indicated a significant increase in COLA would be coming in upcoming years, but since then inflation has dropped significantly and stood at just 2.5 percent on an annual basis in August of 2024.
Social Security officially announced the 2025 COLA increase last month after the September Consumer Price Index report was released.
