Good News for Retirees: Will Social Security COLA Increase in 2025?

Good news is coming for American retired People, The US Government has taken the initiative to live comfortably through retirement. The US government announced a Social Security Cola Increase in 2025 because many Americans don’t think they can live comfortably after retirement.

The Social Security Cola experts predict that COLA 2025 will be lower than in 2022, 2023 and 2024. In 2022 COLA was 8.7% because of higher inflation that year, 3.2% increase was seen in 2024 as per 2023, but the reports coming it seems like 2.63% COLA will be in 2025.

Will Social Security COLA Increase in 2025?

For Senior Citizens, the benefits of Social Security will increase by a cost-of-living adjustment (COLA) of 2.6% in 2025. As per the below chart, you can see the average payment for different beneficiary groups.

Beneficiary Type	Average Benefit Before COLA	Average Benefit After COLA	Additional Monthly Income
Retired Employee	$1,918	$1,968	$50
Spouse	$911	$935	$24
Survivor	$1,508	$1,547	$39
Disabled Employee	$1,538	$1,578	$40
(Source: Data by Social Security Administration, Note: Benefit amounts have been rounded to the nearest dollar.)

How COLA adjustments are Implemented

COLA is applied to the primary insurance amount of the recipient, this amount will received to the person at their full retirement age. This adjustment also applies to those receiving spousal, survivor, and disability benefits.

Also Read: $1000 Monthly Support: Benefits and Process of the Rental Assistance Program

The people who claim early receive lower benefits, while those who delay beyond full retirement age receive higher monthly amounts, but this increase stops after age 70.

COLA (Cost of Living Adjustment) is a method in which income increases are per the inflation rates. Government organizations monitor the CPI (Consumer Price Index) and as per CPI government adjusts wages, pensions, or benefits based on its annual changes. The process will help the recipient in their financial stability

COLA Payment Increase 2025 Update

In the United States, concerns are spreading about the COLA increase in 2025. Our research indicates that many low-income citizens are currently facing a financial crisis. They are finding it difficult to manage the expenses of their basic needs. The cost of living and inflation rates are rising globally, making it harder for these citizens to purchase essential food items and meet other living expenses. This situation has caused many people to struggle to make ends meet.

Details about the COLA payment 2025 increase, including an adjustment of 2.66%, are currently forecast. The Social Security Administration (SSA) has not officially confirmed these figures. For the latest updates and official announcements, please visit the SSA’s official website www.ssa.gov.

Expected Cost of Living Increases in 2025

The Senior Citizens League, which helps elderly people, previously said that Social Security benefits could increase by 2.6% in 2025. Now, they think it won’t rise as much because inflation has slowed as thought in May. Alex Morrey, who studies statistics for TSCL, says Social Security payments are likely to rise by 2.6% next year, which matches what the Social Security Board of Trustees said.

Social Security benefits could go up just 2.6% next year, disappointing some retirees That is below the 3.2% hike budgeted this year and far less than a projected increase of 8.7 percent in 2023. But that little bit of extra may be challenging for others who are already a dollar short at the end. This is a huge issue all on its own, but in reference to Social Security recipients; the ability of their benefit not [being] able to buy as much with it due to how COLA calculated.

Cost-of-living adjustment hike in 2025

The Social Security Administration changes payments according to increases in the cost of living. It is called the cost-of-living adjustment (COLA), and it is calculated based on a subset of data from the Consumer Price Index for Urban Wage Workers and Clerical Workers (CPI-W) that measures inflation in Q3 between July 1 – Sept. The main thing about the CPI-W is that it attempts to measure how much less or more of a dollar people have in their pockets when they get paid by the hour.

The process is simple: they divide the CPI-W of the third quarter of the current year by the CPI-W of the third quarter of the previous year to calculate the percentage increase, which determines the COLA for the following year.

For more details you can visit the official website

FAQs Social Security COLA Increase