COLA increase in 2025 will increase Social Security payments for retirees and retired couples by 2.5%, bringing monthly totals to $1,968.49 and $3,936.98 respectively.
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Survivor Benefits Increase: In 2025, the cost-of-living adjustment (COLA) will increase Social Security payments for different recipients by varying amounts.
Currently, the average monthly payment for retirees in 2024 is $1,920.48. With the expected COLA increase of 2.5%, this amount will rise by around $48.01 each month, making the new total about $1,968.49 per month.
For a retired couple receiving Social Security together, their current average monthly income is $3,840.96. With the COLA increase, their benefits would go up by about $96.02, bringing their monthly total to roughly $3,936.98 in 2025.
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People receiving Social Security due to a disability will also see an increase. In 2024, they will get an average of $1,539.92 per month, and with an expected rise of $38.50, their monthly payment will be about $1,578.42 in 2025. Widows and widowers will get an additional $44.61 each month on top of the current $1,784.56, bringing their monthly total to around $1,829.17.
Children of deceased workers receiving survivor benefits currently get an average of $1,103.59 per month. With a $27.59 increase, their new monthly payment will be about $1,131.18.
Due to high inflation, the Cost-of-Living Adjustment (COLA) for Social Security in 2024 is only expected to be 2.5%. This is a lot less than the 8.7% increase seen in 2023. But the change in 2024 is more like the average COLA over the last 20 years, which is 2.6%. This means that consumer prices have leveled off.
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Many beneficiaries will have more money because of this increase, but higher Medicare Part B premiums could cancel out some of these gains. It is expected that premiums will go up from $174.70 to about $185 in 2024, which will make the COLA less useful overall.
The Medicare Trustees or the Social Security Administration are two reliable sources that you can look at for more information.
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