The Social Security Administration (SSA) has announced the Cost of Living Adjustment (COLA) raise for 2025.
This increase will affect retirees, people receiving Supplemental Security Income (SSI), and those who get Social Security Disability Insurance (SSDI).
The COLA for 2025 will be 2.5%, which is slightly less than the 3.2% raise from 2024.
How Much Will COLA Raise My Benefits?
For retirees, this means an extra $50 per month. People receiving SSI will get an additional $23 a month, or $276 per year.
SSI payments are lower, so their increase is smaller compared to those receiving retirement benefits.
Who Gets an Extra $600?
Retirees who get the average monthly payment of $1,920 will see a $50 increase, adding up to $600 extra over the course of a year.
If you are a retiree, this extra money each month can be a big help, especially if you’re living on a fixed income.
Will My Payment Increase by $50?
Not everyone will see a $50 increase. If you’re already receiving a low Social Security payment, your increase will be smaller.
For example, if your monthly Social Security payment is only $900, your COLA increase for 2025 will be just $22.50 per month.
When Will the COLA Increase Start?
The 2025 COLA increase will be effective in January 2025, but it won’t be included in payments sent in October, November, or December 2024.
People who get SSI will receive their January payment on December 31, 2024, because January 1 is a holiday.
Why Is the SSI Payment Sent Early?
The SSA never sends payments on weekends or holidays. Since January 1 is a holiday, people receiving SSI will get their extra 2.5% in December 2024 instead of January 2025.
The 2025 COLA raise for Social Security, SSI, and SSDI recipients is a helpful increase, though it is smaller than the 2024 raise.
For retirees, the extra $50 per month can make a difference, but those with lower payments will see a smaller boost.
The COLA increase will start in January, but SSI recipients will get their payments early in December.
What is COLA?
COLA stands for Cost of Living Adjustment, which is a yearly increase in Social Security payments to help recipients keep up with inflation.
How much will my benefits increase in 2025?
In 2025, most retirees will receive $50 more per month. SSI recipients will get $23 extra each month.
When will the COLA increase be paid out?
Payments with the COLA increase will be made starting in January 2025, but SSI payments will be made early in December 2024.
Why is the COLA increase smaller in 2025 than in 2024?
The COLA increase is based on inflation, and in 2025, inflation is lower than it was in 2024, which is why the increase is smaller.
Will everyone receive $50 extra per month?
No, people with lower Social Security payments will see a smaller increase. For example, if you’re getting $900 per month, your increase will be $22.50 per month.
