The Social Security Administration (SSA) has confirmed the 2025 Cost-of-Living Adjustment (COLA), providing a modest increase to monthly benefits for millions of Americans. The adjustment is intended to help recipients keep pace with everyday expenses as prices continue to change over time. For 2025, the COLA is set at 3.2 percent.
This update applies to more than 70 million people, including retired workers, individuals receiving disability benefits, survivors, and Supplemental Security Income (SSI) recipients. The increased amounts will automatically appear in benefit payments starting in January 2025, and no additional steps are required to receive the update.
On average, retired workers will see an increase of about $50 per month, bringing the typical benefit to roughly $1,790. Disability and survivor benefits will also rise, along with SSI payments for individuals and couples. Maximum benefit amounts for those who claim at different retirement ages are expected to increase as well. COLA adjustments are designed to help protect purchasing power for people who depend on fixed incomes.
Many beneficiaries rely on Social Security to help cover essential costs such as groceries, housing, utilities, transportation, and healthcare. While the increase may help offset some expenses, rising living costs remain a challenge for many households. Beneficiaries are encouraged to review their updated SSA benefit notice, which will be mailed in December, and take time to reassess their monthly budget for the year ahead. Staying informed helps individuals plan with greater confidence.
