Social Security benefits and Supplemental Security Income (SSI) payments for more than 72.5 million Americans will increase 2.5 percent in 2025, the Social Security Administration announced this week. On average, Social Security retirement benefits will increase by about $50 per month starting in January.
Over the last decade the cost-of-living adjustment increase has averaged about 2.6 percent. The cost-of-living adjustment was 3.2 percent in 2024.
Nearly 68 million Social Security beneficiaries will see a 2.5 percent cost-of-living adjustment beginning in January 2025. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2024.
Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax is slated to increase to $176,100 from $168,600.
