Social Security Benefits to Increase 2.5% in 2025

In 2025, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 2.5% cost-of-living adjustment (COLA), translating to an average increase of approximately $50 per month. This adjustment, affecting over 71 million Americans, is lower than the previous years' increases of 3.2% in 2024 and 8.7% in 2023, reflecting a moderation in inflation. The Social Security Administration (SSA) noted that this increase is consistent with the past decade's average but represents the smallest raise since 2020. Beneficiaries will start seeing these increases in January 2025, with SSI recipients receiving adjustments on December 31, 2024. Concerns persist among retirees regarding the sufficiency of the increase in light of rising living costs, as many depend heavily on Social Security for their income. Additionally, the long-term financial viability of the Social Security program remains a pressing issue, with projections indicating potential shortfalls by 2035.