Social Security COLA Set at 2.5% for 2025

Social Security beneficiaries will get a 2.5 percent increase in their monthly payments next year, the Social Security Administration (SSA) announced Oct. 10th.

The 2025 cost-of-living adjustment (COLA) is the lowest since 2021, reflecting a continued cooling of inflation following a surge in consumer prices during the COVID-19 pandemic.

The 2.5 percent COLA will bump up the estimated average Social Security retirement benefit by $49 a month, from approximately $1,927 to $1,976, starting in January, according to the SSA. The estimated average survivor benefit will rise from $1,788 to $1,832 and Social Security Disability Insurance (SSDI) from $1,542 to $1,580.

“Inflation is clearly top of mind, not just for retirees, but for Americans generally, and the annual COLA provided by Social Security is a critical feature of the system,” says Rob Williams, managing director of financial planning at Charles Schwab.

“Some may feel the increase for 2025 is low relative to the inflation they feel in their pocketbooks,” Williams says. “Still, it’s a welcome increase that builds on a 5.9 percent increase in payments in 2022, 8.7 percent in 2023 and 3.2 percent this year.”

JD Miller

About JD Miller

John D. Miller is the founder/owner of Home Care Partners, LLC, a Massachusetts business providing private duty, personalized in-home assistance and companion care services to those needing help in daily activities and household functions. Phone: (781) 378-2164 Email: [email protected] Website: https://homecarepartnersma.com
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