Retirees across the United States will be pleased to know that their Social Security benefits are getting a raise in 2025. The Social Security Administration (SSA) has announced a 2.5% increase in the cost-of-living adjustment (COLA) for the upcoming year. This change means that many retirees will see a boost in their monthly checks. In this article, we’ll explain how much more retirees can expect to receive, when the payments will be made, and how some individuals might see even bigger increases due to new legislation. If you’re wondering about the details of the 2025 COLA increase, keep reading to find out what it means for you.
What is the 2025 Social Security Increase?
For 2025, retirees will see an increase of 2.5% in their Social Security benefits. This increase is smaller than the 3.2% raise in 2024, but it’s still significant for those who rely on Social Security for a portion of their income. The 2.5% increase means an extra $49 for the average retiree, pushing their monthly check from $1,927 to $1,976. Married couples will benefit from a larger increase of $75, raising their combined monthly benefits from $3,014 to $3,089.
Why is the COLA for 2025 Smaller?
The 2.5% COLA for 2025 is the smallest since 2020, but it is close to the historical average. Over the past 20 years, the average COLA has been around 2.6%. While inflation is still an important factor in determining COLA, it wasn’t as high in 2024 as it was in 2023. In 2023, the COLA hit a significant 8.7%, largely due to inflation spikes caused by the COVID-19 pandemic. For context, the COLA has ranged from as low as 0.0% in 2010 and 2011 after the housing crisis, to as high as 8.7% in 2023.
When Will You Receive Your 2025 Social Security Payments?
If you’re a retiree, you may be curious about when your increased Social Security payment will arrive. The exact date depends on your birthdate:
- If your birthday is between the 1st and 10th of the month, you’ll receive your payment on the second Wednesday of the month.
- If your birthday is between the 11th and 20th, your check will arrive on the third Wednesday of the month.
- If your birthday is between the 21st and 31st, your check will come on the fourth Wednesday of the month.
So, no matter when you were born, you’ll be able to track when your new, higher payments will arrive.
The Social Security Fairness Act and What It Means for Retirees
Some retirees will see even larger increases due to the Social Security Fairness Act (SSFA), which was passed to repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These provisions previously reduced benefits for certain public sector workers who also worked in jobs covered by Social Security.
The SSFA is effective for benefits after December 2023, and retirees who are affected by it will see their benefits increase starting in 2025. However, the SSA is still working on adjusting payments for people who qualify, and it may take up to a year—or longer—to process all changes. If you’re affected, you’ll likely receive a one-time payment for retroactive benefits, and then your monthly checks will increase accordingly.
If you think you may qualify for the SSFA changes, be sure to update your contact information with the SSA. You don’t need to do anything else to get your increase, as long as your address and direct deposit information are correct.
What Does the Future Hold for Social Security Payments?
While the 2025 COLA increase may be smaller than last year’s, the good news is that Social Security payments are still rising to help retirees keep up with the cost of living. The COLA adjustments are based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation. Since inflation affects purchasing power, COLA ensures that Social Security benefits reflect the rising costs of goods and services.
Even though the future increases may vary, Social Security benefits are a key financial resource for millions of retirees. For many people, these monthly checks provide a steady income that is vital for their well-being and independence.
Conclusion: Stay Informed About Your Social Security Benefits
As a retiree, it’s important to stay updated on any changes to your Social Security benefits. The 2025 COLA increase of 2.5% will offer some relief by raising monthly payments, and the Social Security Fairness Act may provide additional increases for some individuals. Remember to check your payment schedule to know when your increased checks will arrive and ensure your information with the SSA is up-to-date. Staying informed will help you plan for your financial future and ensure that you are getting the full benefits you deserve.
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