Social Security announces a new cost-of-living
2025 Social Security COLA Overview
The Social Security Administration’s 3.2% Cost-of-Living Adjustment (COLA)
for 2025 aims to protect beneficiaries from inflation.
While smaller than recent increases,
it helps those for whom Social Security is a “financial lifeline rather than supplemental income.”
How the Increase Is Calculated
The COLA is based on inflation data from the CPI-W.
Although inflation has cooled, essentials like food, housing, utilities, and healthcare remain costly.
The adjustment is meant to “preserve stability, not provide extra financial comfort.”
Who Benefits and By How Much
More than 70 million people will benefit automatically starting January 2025.
Retirees will see an average monthly increase of about $50, with benefits rising to roughly $1,790–$1,920.
Disability and survivor benefits will also increase, helping offset rising expenses.
SSI and Ongoing Concerns
SSI payments will rise to $968 for individuals and $1,452 for couples.
Still, advocates warn that healthcare and housing costs often outpace COLAs,
urging beneficiaries to plan carefully for 2025.
