Most years, beneficiaries receive an increase in their Social Security benefit payments. This is referred to as a COLA. For 2025, the Social Security increase 2025 will be only 2.5%. This is lower than 2024 of 3.2 and much lower than the 2023 increase of 8.7%.
The U.S. Bureau of Labor Statistics calculates the COLA with data they get from the CPI (Consumer Price Index). The CPI tracks the costs of goods & services.
An annual increase in Social Security benefits provides seniors some relief against the high cost of inflation and provides them a little more purchasing power annually. In turn, this helps the overall economy.
How this helps beneficiaries:
The 2.5% COLA increase provides beneficiaries an increase in their Social Security checks.
Usually the is COLA increase, leads to an increase in Medicare Part B premiums. Because, in many cases, Medicare premiums are deducted from Social Security checks, therefore beneficiaries may not notice the COLA increase at all.
Please note, federal law has a hold harmless clause that states, “no increase in Part B premiums can reduce a Social Security recipient’s monthly check below what it was in the previous year.” This is in place to protect Social Security recipients to some extent.
When will recipients see the increase
Social Security recipients will see the increase in January of 2025. Beneficiaries should be notified in December with their new benefit amount.
Beneficiaries who have a birthday that falls on the 1st through the 10th of the month, receive their benefit on the 2nd Wednesday of each month. Those who have a birthday the 11th through the 20th, receive benefits the 3rd Wednesday of each month. Anyone whose birthday is between the 21st and 31st receive their benefits the 4th Wednesday of each month.
Important: Social Security increases can impact eligibility for Extra Help.
Learn about the 2025 prescription payment plan
Find your benefit amount
The fastest and most convenient way to keep track of social security benefits is by creating a Social Security account. Beneficiaries can use the account to check Social Security statements, report wages, change their address and more.
Create a my Social Security account
Starting in December, most beneficiaries can view their Social Security COLA notice online. Notices are available in the message center in their online account. Notices will also go out in the mail. Beneficiaries must create an account before November 24, 2024 to view the online COLA notices.
Once the account is created, beneficiaries can log on and manage notification preferences by clicking on “Message Center Preferences” and choose your message options. Beneficiaries can opt to receive courtesy messages either in email or by text message.
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