The Social Security Administration has announced a2.5%cost-of-living adjustment (COLA) to benefit checks starting in 2025.
That's down from the 3.2% increase in 2024 and the smallest COLA since 2021, reflecting cooling inflation.
Almost 68 million Americans receive monthly Social Security benefits, totaling about $1.5 trillion.
More than a third of retirees say their Social Security checks are a major source of income, according to an April 2024 Gallup survey.
Social Security COLA 2025
- What is the Social Security COLA?
- How much is Social Security going up in 2025?
- How is the cost-of-living adjustment calculated?
- Changes to Social Security in 2025
- When can I start collecting Social Security?
- How much is the average Social Security check?
- When will I see the increase in my Social Security check?
- FAQs
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What is the Social Security COLA?
Since 1975, the SSA has adjusted benefits at the beginning of each calendar year to keep up rising costs. The annual increase is calculated based on the changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Due to the post-pandemic jump in inflation, the COLA has been higher in recent years.
- 2021: 1.3%
- 2022: 5.9%
- 2023: 8.7%
- 2024: 3.2%
Benefits can stay static, though it's rare: Since being instituted in 1975, the COLA has only been 0% in 2009, 2010 and 2015.
How much is Social Security going up in 2025?
The Social Security Administration has announced a 2.5% increase for 2025, in line with predictions from both the Senior Citizens League and The Center for Retirement Research at Boston College.
Inflation has continued to fall from its post-pandemic highs: The September 2024 Consumer Price Index showed a 2.4% increase in average prices since September 2023, the lowest since February 2021.
A COLA of 2.5% translates to an average bump of $48 in monthly Social Security benefits, raising the average check for retired workers to $1,968.
Social Security recipients will be mailed an official notice about their 2025 benefits in December. You can access the information online in mid-November, via your mySocialSecurity account.
How is the Social Security COLA calculated?
The COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which the Bureau of Labor Statistics calculates by looking at the average prices of household goods like food, housing and transportation.
The COLA for any given year is determined by the CPI-W in the third quarter of the prior year. The COLA for 2025 is based on data from July to September.
Other changes to Social Security in 2025
You must compile 40 work credits over your lifetime to qualify for Social Security retirement benefits, with a maximum of four credits allowed annually.
Earning one credit in 2025 will require wages or self-employment income equalling at least $1,810, an increase from $1,730 in 2024. You'll need to make at least $7,240 to earn four credits, up from $6,920 in 2024.
The maximum annual earnings subject to Social Security tax has also increased, from $168,600 to $176,100.
If you're under full retirement age, there's a limit to how much you can earn and still receive full Social Security benefits. For 2025, the limit is going up to $23,400. (For people reaching full retirement age in 2025 the limit will be $62,160.)
When can I start collecting Social Security?
Eligible workers can begin receiving Social Security benefits at age 62. But you'll get a reduced monthly payment if you don't wait until full retirement age.
| Year of birth | Social Security full retirement age |
|---|---|
| 1943-1954 | 66 |
| 1955 | 66 and two months |
| 1956 | 66 and four months |
| 1957 | 66 and six months |
| 1958 | 66 and eight months |
| 1959 | 66 and 10 months |
| 1960 or later | 67 |
How much is the average Social Security check?
The amount of your Social Security benefits depends on your income throughout your working years and what age you start claiming benefits, among other factors.
In June 2024, the average monthly Social Security benefit for retired workers was $1,918. For all recipients — including spouses, children and disabled workers — the average check was $1,781.
Half of seniors who receive Social Security count on their benefits for at least 50% of their household income, according to the SSA. A quarter rely on their check for at least 90% of their income.
Supplementing your benefits with an employer-sponsored 401(k) or an individual retirement account (IRA) can help you live more comfortably in retirement. We ranked Charles Schwab and Betterment as among some of the best IRAs.
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When will I see the increase in my Social Security check?
The 2025 COLA will appear in benefit checks for most recipients beginning in January 2025. When your check arrives is determined by your date of birth.
- If you were born between the first and 10th of the month, you should see the increase in the check arriving on Jan. 8, 2025.
- If you were born between the 11th and 20th of the month, expect it on Jan. 15, 2025.
- If you were born between the 21st and the end of the month, your larger check will come on Jan. 22, 2025.
Some recipients will receive the increase sooner, however.
- If you've received Social Security benefits since before May 1997, your first check of the year will arrive on Jan. 3, 2025.
- If you receive Supplemental Security Income (SSI) benefits are typically paid on the first of the month. Since New Year's Day is a federal holiday, though, those checks will go out on Dec. 31, 2024.
The full calendar of Social Security payment dates is available online.
FAQs
What is the Social Security cost-of-living adjustment for 2025?
The COLA for 2025 is 2.5%, the smallest increase since 2021.
At what age do you get 100% of your Social Security?
Your full retirement age depends on the year you were born: If you were born in 1957 or earlier, you're already eligible for 100% of your Social Security benefits. After that, it rises gradually to age 67 for anyone born in 1960 or later.
How is Social Security funded?
Social Security is funded through a dedicated payroll tax of 12.4%, split between workers and employers on income up to $168,600. (Self-employed people pay the full amount.) Contributions collected now pay for current recipients' benefits.
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