The 2025 Social Security increase is 2.67 percent
If you receive Social Security, your monthly payment will increase by 2.67 percent starting in January 2025. This percentage is called the Cost of Living Adjustment, or COLA. It is calculated each year based on inflation data from the previous months.
The exact dollar amount of your increase depends on what you received in 2024. Someone getting $1,500 a month will see roughly a $40 increase. Someone getting $3,000 a month will see roughly an $80 increase. Your new payment amount will appear on your January 2025 benefit statement, which Social Security mails in December.
You do not need to do anything to receive this increase. It happens automatically if you are already on Social Security. If you have not yet started benefits, the 2.67 percent does not affect you — your first payment will be calculated based on your earnings record and the age you start.
Key Takeaways
- The 2025 COLA is 2.67 percent, which means your monthly Social Security payment will increase by that percentage starting in January.
- Your new payment amount depends on what you received in 2024 — there is no flat dollar increase that applies to everyone.
- You will see your new amount on your benefit statement in December 2024, and the higher payment will arrive in January 2025.
- The COLA is based on inflation data and changes each year — it was 3.2 percent in 2024 and 8.7 percent in 2023.
How the COLA is calculated each year
Social Security calculates the COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures how prices change for everyday goods and services. The Social Security Administration looks at the average CPI-W for July, August, and September of the current year and compares it to the same three months from the previous year.
If prices have gone up, the COLA is positive and your benefit increases. If prices have stayed flat or gone down, the COLA can be zero or negative, though negative adjustments are rare and have not happened since the 1970s. The COLA is announced in October each year, so you know your new amount before the year ends.
What changed from 2024 to 2025
In 2024, the COLA was 3.2 percent. The 2025 increase of 2.67 percent is lower because inflation slowed during the months used to calculate it. This does not mean your payment is going down — it means the year-over-year increase is smaller than it was last year.
For context, the COLA was much higher in 2023 at 8.7 percent, which was the largest increase in four decades. That spike reflected the rapid inflation that followed the pandemic. The 2025 figure of 2.67 percent reflects a return to more moderate inflation levels.
When you will see the increase in your bank account
Your new payment amount takes effect in January 2025. The exact date depends on your birth date, because Social Security staggered payment dates to spread the workload. If your birthday is between the 1st and 10th of the month, you are paid on the second Wednesday. If it is between the 11th and 20th, you are paid on the third Wednesday. If it is between the 21st and 31st, you are paid on the fourth Wednesday.
You will receive your December 2024 payment at the old rate, and your January 2025 payment will reflect the 2.67 percent increase. Your benefit statement, which arrives in December, will show both your old and new monthly amounts so you can see the difference.
How the increase affects Medicare premiums and taxes
If you pay Medicare Part B or Part D premiums, those premiums may also change in 2025. Medicare sets its premiums separately from Social Security, so the increase in your benefit does not automatically mean your premiums stay the same. However, there is a rule called hold harmless that protects most people: if your Medicare premium increase is larger than your Social Security COLA increase, Medicare will not take more than your raise from your benefit check.
If you still work and earn income, you may owe Social Security taxes on that income. The COLA does not change how those taxes are calculated — it only affects your benefit payment. If you are receiving benefits before your full retirement age and you work, your benefit may be reduced by $1 for every $2 you earn above a certain limit, but the 2025 COLA does not change that rule either.
What to do if your payment seems wrong
When you receive your December 2024 benefit statement, check that the new amount shown matches what you expect. If you received $1,500 in 2024, your 2025 payment should be roughly $1,540. If the number looks very different, contact Social Security to ask why.
You can reach Social Security by calling 1-800-772-1213 (TTY 1-800-325-0778) Monday through Friday, 7 a.m. to 7 p.m. your local time. You can also visit your local Social Security office or create an account at ssa.gov to view your benefit details online. Have your Social Security number and recent benefit statement handy when you call.
Frequently Asked Questions
Will the 2.67 percent increase explore to my Supplemental Security Income?
No. SSI is a separate program with its own rules. SSI recipients do receive an annual increase, but it is based on a different index and is announced separately. Check your SSI benefit statement in December to see if your SSI payment is changing.
Does the COLA increase explore if I am receiving spousal or survivor benefits?
Yes. The 2.67 percent COLA applies to all types of Social Security benefits — retirement, spousal, survivor, and disability. Your new payment will be calculated the same way as a retirement benefit increase.
What if I have not started Social Security yet — does waiting longer give me a bigger increase?
No. The COLA applies to people already receiving benefits. If you have not started yet, your benefit will be calculated based on your earnings record and your age when you claim. Waiting longer increases your benefit because of age credits, not because of the COLA.
Can I find out my exact new payment amount before December?
You can estimate it by multiplying your current payment by 1.0267. For example, if you receive $2,000 a month, your new amount would be roughly $2,053. Your official statement in December will show the exact amount, which may differ slightly due to rounding.