Increase in Social Security & SSI Benefits In 2025, over 72.5 million Americans will see a 2.5% increase in their Social Security and SSI benefits.
This adjustment is designed to help maintain the purchasing power of beneficiaries amidst inflation.
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What is the COLA for 2025?
2.5% Increase in Social Security & SSI
For those receiving Social Security benefits, the 2.5% COLA increase will begin with payments made in January 2025. For SSI recipients, the increase will begin on December 31, 2024. Some individuals may receive both types of benefits.
Read more about the Social Security COLA for 2025.
Social Security Earnings and Taxes in 2025
Along with the COLA adjustment, there are updates to the Social Security tax limits and earnings limits in 2025:
- The maximum earnings subject to Social Security tax (taxable maximum) will rise to $176,100.
- Workers under full retirement age will face an earnings limit of $23,400. For every $2 earned over this amount, $1 will be deducted from benefits.
- Workers who reach full retirement age in 2025 will have an earnings limit of $62,160. A $1 deduction will occur for every $3 earned over this limit, until the worker turns full retirement age.
- No earnings limit applies to workers who are full retirement age or older for the entire year.
Learn more about COLA, tax, benefit, and earning updates for 2025.
Your COLA Notice in 2024
Increase in Social Security & SSI
In December 2024, COLA notices will be available to most beneficiaries online through the Message Center of their my Social Security account. For the first time, Social Security beneficiaries will receive a simplified, one-page COLA notice, which will include:
- Exact dates and Increase in Social Security & SSI
- Personalized language for clarity
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This digital delivery method is both secure and convenient. You can also choose to receive email or text alerts when your COLA notice is ready to view.
Important Reminder: Always be cautious of phishing scams. The Social Security Administration will never request personal information via email, phone calls, or text. Learn how to protect your personal information..
Yearly Reminders for COLA Recipients
Here are a few important points to remember if you receive a COLA notice (SSI Benefits in 2025):
Report New Pensions
If you begin receiving a pension from work not covered by Social Security, be sure to inform Social Security. This also applies if you receive spouse’s or surviving spouse’s benefits a special section in Increase in Social Security & SSI.
Life Changes Affecting Benefits
Certain life changes may impact your benefits. Notify Social Security if you experience:
- Marriage, divorce, or death of a spouse/ex-spouse
- A child or stepchild who no longer qualifies for benefits on your record
Visit www.ssa.gov/potentialentitlement for further details.
Suspect Social Security Fraud?
If you suspect fraud, report it immediately at Social Security Fraud or call the Fraud Hotline at 1-800-269-0271.
Help Prevent Identity Theft
Be mindful of scams asking for your Social Security number or personal information. Learn more about preventing identity theft at USA.gov.
Medicare Information for 2025
Increase in Social Security & SSI
Changes to Medicare in 2025 will be announced on www.medicare.gov or by calling 1-800-MEDICARE (1-800-633-4227). Social Security beneficiaries receiving Medicare will find updates on their new 2025 Increase in Social Security & SSI 2.5% amounts in their COLA notice.
History of Automatic Cost-of-Living Adjustments (COLA)
The COLA ensures that Social Security and SSI benefits keep up with inflation. It is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is provided by the Bureau of Labor Statistics.
The COLA provision was introduced as part of the 1972 Social Security Amendments, and automatic COLAs began in 1975. Before that, benefit increases were determined by special legislation passed by Congress.
Automatic COLAs Since 1975:
| Year | COLA Increase |
|---|---|
| July 1975 | 8.0% |
| July 1976 | 6.4% |
| January 2024 | 3.2% |
| January 2025 | 2.5% |
For more information, visit the Social Security website for detailed COLA history.
Important Links:
- Social Security COLA Overview: www.ssa.gov/cola
- Prevent Identity Theft: www.usa.gov/identity-theft
- Social Security Fraud Reporting: https://oig.ssa.gov/report
- Medicare Information for 2025: www.medicare.gov
- For Other Resources for 2025: Click here
- For Home Page: Click here