The Social Security Administration (SSA) announced on Oct. 10 that Social Security benefits and supplemental security income (SSI) payments will increase by 2.5 percent in 2025.
The cost-of-living adjustment (COLA) will affect more than 72.5 million Americans, providing an average increase of about $50 per month for Social Security retirement beneficiaries starting in January, the agency said in a statement.
Nearly 68 million Social Security beneficiaries will see an increase in their payments beginning in January 2025, while approximately 7.5 million SSI recipients will receive higher payments starting Dec. 31, 2024. Some individuals receive both Social Security and SSI benefits.
The COLA for 2025 represents the smallest annual rise since 2021, when recipients experienced a 1.3 percent increase in their benefits. In contrast, recent years have seen more substantial COLAs as a reaction to high inflation….