The Social Security Administration (SSA) has confirmed an increase in benefits, which is news expected by millions of beneficiaries in the United States. This adjustment will take effect in 2025. Although the increase is modest, it will allow payments to adjust to current inflation rates. The cost of living adjustment (COLA) process is based on the Consumer Price Index for Urban Workers and Clerical Employees (CPI-W).
The annual COLA is vital to ensuring that Social Security beneficiaries can maintain their purchasing power in the face of price increases in goods and services. The SSA makes the calculation based on the CPI-W growth from the third quarter of the previous year to the current year. Thus, payments are adapted proportionally to the cost of living. In 2025, the CPI-W showed an increase of 2.9% in July and 2.4% in August, suggesting more moderate inflation this year.
A Smaller Increase for 2025 for Beneficiaries
Although September data has not yet been released, economists anticipate that the COLA for 2025 will be between 2.5% and 2.6%. This figure is expected to be lower than the 3.2% applied for 2024 due to the slowdown in inflation. This change will result in a more moderate increase in profits, thus aligning with economic fluctuations.
One of the benefiting groups will be Supplemental Security Income (SSI) recipients. Currently, they receive an average of $698 per month, which with the new adjustment could increase to $715. Likewise, an average retired worker receiving $1,920 per month will see an increase of approximately $48, bringing their payment to $1,968 per month by 2025. Retired couples receiving joint benefits will see an increase of $96, bringing their total payment to $3,937 per month.
Payments for Other Social Security Groups
Social Security Disability Security (SSDI) recipients will also see an adjustment. Currently, they receive an average of $1,540 per month, which will increase to $1,578, which is equivalent to an increase of $38.50. For survivors, such as widows or widowers, the average monthly payment will rise from $1,784 to $1,829, an increase of $45.
In addition to payment averages, SSA offers maximum benefits for beneficiaries who meet certain conditions, such as delaying receipt of benefits until age 70 or contributing above maximum taxable income. For example, your retirement benefit check will increase from $4,873 to $4,995, a difference of $122.
Maximum Social Security Checks Details — Your Money Is Coming Soon
As for survivor benefits, the maximum payment will increase from $3,653 to $3,744, while disability benefits will increase from $3,822 to $3,918, an increase of $96. For SSI recipients, the current maximum of $1,415 will be adjusted to $1,450, an increase of $35.
Although these values are estimates, SSA reminds beneficiaries that final figures may vary slightly depending on individual circumstances. Once the SSA releases the official adjustment, beneficiaries will be able to calculate their new payment by applying the percentage increase to their current income. Additionally, the agency will send personalized notices in December to clarify the changes.
Changes to the SSI Program
Starting next week, the SSI program will implement changes that will benefit millions of low-income Americans. Under a final rule issued by SSA, payments to some food assistance recipients will not be reduced because food will not count toward SSI eligibility. This policy will go into effect on September 30, allowing payments to resume in October after completing the necessary adjustments.
Previously, receiving food or shelter was considered unearned income for SSI recipients, affecting their payments or even their eligibility. With the changes announced, more people are expected to maintain access to benefits without unfair reductions in their payments.
