Starting in January, over 72 million Americans will see a little more money in their Social Security checks. It’s not a huge windfall, but it’s still a welcome bump—especially at a time when groceries, rent, and healthcare just keep getting more expensive.
What’s Changing With Social Security in 2025?
If you get Social Security or Supplemental Security Income (SSI), you’re getting a 2.5% raise in 2025. This is known as the Cost-of-Living Adjustment (COLA), and it happens every year to help keep up with inflation.
What does 2.5% actually look like in real life? For the average retiree, it means about $50 more per month. So, if you’re currently getting around $1,927 a month, your check will go up to about $1,976. Not a fortune—but still helpful if you’re on a fixed income.
Why Is the Increase Smaller This Year?
You might remember that in 2023, there was a much bigger jump—8.7%, one of the largest ever. That was because inflation was sky-high. But now that prices are rising more slowly, the increase is smaller.
Still, the 2.5% boost is right in line with the average increase we’ve seen over the past two decades. And while it might not cover everything, it’s meant to help take a little pressure off.
What Else Is Changing?
There are a few other updates you’ll want to know about for 2025:
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The maximum amount of earnings subject to Social Security tax is going up, from $168,600 to $176,100. If you’re still working and earning a higher income, this matters for how much you’ll be taxed.
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If you’re working and collecting benefits before full retirement age, the earnings limit is going up to $23,400. If you make more than that, your benefits might be temporarily reduced. But if you reach full retirement age in 2025, that limit jumps to $62,160.
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SSI recipients are getting a raise too. The maximum federal payment will go up to $967 per month for individuals and $1,450 for couples, starting with checks that arrive on December 31, 2024.
When Will You See the New Amount?
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If you get SSI, you’ll see the increase in your December 31 check.
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If you get Social Security, your new benefit amount starts in January 2025.
You’ll also get a letter in the mail in early December 2024 telling you exactly how much your new monthly amount will be. If you have a my Social Security account online, you can check your updated info there, too—and often faster than waiting for the mail.
Why This Matters
We all know that $50 doesn’t go as far as it used to—but for millions of people living on fixed incomes, every dollar makes a difference. Whether it helps you cover an extra prescription, a rising utility bill, or just a little breathing room in your monthly budget, this increase is something to pay attention to.
It’s also a reminder to keep an eye on your benefits and make sure your information is up to date. If you haven’t already signed up for a my Social Security account, now might be a good time—it’s free and lets you view your benefits, payment history, and future estimates.
