As long as inflation stays low, seniors can expect their Social Security checks to go up by less in 2025. The Social Security Administration tries to guess how much the cost of living adjustment (COLA) will make monthly payments go up each year. The Senior Citizens League’s most recent predictions say that the COLA rise next year will be about 2.57%, which is 0.63% less than the current COLA.
More than 71 million retirees, survivors, disabled people, and Supplemental Security Income (SSI) recipients depend on their monthly benefits to cover their living costs and, in some cases, fight poverty. For low-income seniors from the SSI program, understanding how COLA changes affects their monthly benefits is especially important.
The Social Security check increase in 2025 will be different from the increase in 2024
Fewer people are getting the COLA because inflation is going down. In July, it was 2.9% year-over-year, which was the lowest number in more than three years. A 2.6% COLA raise would be the lowest increase for seniors since 2021, but it’s not a sure thing.
The next few months will be very important because the government uses data from the third quarter to figure out the COLA. In 2025, seniors will get more money from their pensions if prices go up in August and September. The COLA might be less than what is expected if consumer price inflation slows down.
Every year, the government looks at the average yearly rate of inflation from July to September of the previous year to figure out the COLA. This means that when wages, perks, or salaries go up because of inflation, it’s called a cost-of-living adjustment, or COLA. The Consumer Price Index (CPI) is used to measure inflation.
It’s generally based on something objective, like how much extra money the average person or family needs over time to keep up their standard of living. People on fixed incomes and in areas prone to inflation benefit from COLA increases. They also help keep workers, and the subject is often brought up in union talks.
Why should inflation be a top concern for Social Security beneficiaries and their Social Security check amounts?
In July, the Senior Citizens League polled seniors and found that 71% of them said that inflation eating away at their savings is one of their biggest worries about retirement.
The rising cost of living is making it hard for more and more beneficiaries, especially the elderly, to pay for things like rent, food, and medicine that are going up in price. This is a problem because 78% of those who answered said they had more money each month for wants than they did last year.
Also, Mary Johnson, a policy analyst for Social Security and Medicare, said that the increase in Social Security checks is supposed to help beneficiaries keep their purchasing power as prices rise, but it is clear that it is not keeping up with the real costs seniors face.
The COLA doesn’t have as much of an effect as it used to because healthcare costs have gone up faster than inflation, which is hard on seniors. So, seniors may still have trouble paying for their medical bills even if their Social Security check goes up.
How will a 2.57% COLA increase the monthly Social Security check for beneficiaries?
The cost of living adjustment (COLA) of 2.57% will affect everyone in the following ways if it becomes law in October. Keep in mind, though, that this estimate of a raise in your Social Security check is only that—an estimate. In two months, it could be different.
| Retirement benefits (plus 2.57%) | Survivor benefits (plus 2.57%) | SSDI benefits (plus 2.57%) | SSI benefits (plus 2.57%) |
| On average: $1,949
Age 62: $2,780 Age 67: $3,920 Age 70: $4,998 |
On average: $1,505
Individual: $1,773 2 children: $3,653 |
On average: $1,537
Blind recipients: $2,590 Maximum payment: $3,822 |
On average: $698
Individuals: $943 Couples: $1,415 Essential person: $472 |