In 2025, the United States Social Security Administration (SSA) announced a 2.5% Cost-of-Living Adjustment (COLA) for Social Security and Supplemental Security Income (SSI) benefits. This increase is designed to help more than 72.5 million Americans keep pace with rising living costs as inflation impacts essentials like housing, groceries, and healthcare. Social Security+1.
Social Security Increase 2025 Chart
This article breaks down the details of the 2025 increase, shows you a chart with benefit adjustments, discusses related changes, and answers some of the most frequently asked questions. If you’re a beneficiary or planning ahead, this guide will help you understand what to expect.
2025 Social Security COLA – Overview
Here are the major changes that come with the COLA increase in 2025:
| Aspect | 2024 Value | 2025 Value | What It Means |
|---|---|---|---|
| COLA Increase | — | 2.5% | All eligible Social Security & SSI benefits increase by this percentage. Social Security+1 |
| Number of Beneficiaries | — | ~72.5 million | Includes Social Security + SSI recipients. Social Security |
| Maximum Taxable Earnings (OASDI) | $168,600 | $176,100 | The wage cap for Social Security taxes increases. Social Security+1 |
| Earnings Limit (below full retirement age) | $22,320/year | $23,400/year | If you earn above this, benefits reduction applies. Social Security+1 |
| Earnings Limit (year reaching full retirement age) | $59,520/year | $62,160/year | Applies until full retirement age month. Social Security+1 |
| Average Monthly Retired Worker Benefit (before COLA) | ~$1,927 | — | Base for calculating benefit increase. Social Security |
| Average Monthly Retired Worker Benefit (after COLA) | — | ~$1,976 | Reflects the 2.5% raise applied in January 2025. Social Security |
Who Gets the Benefit Social Security Increase 2025
1. Social Security & SSI Recipients
All eligible retirees, disabled workers, survivors, and SSI recipients will see their benefits rise by the stated COLA. Social Security+1
2. Workers with Earnings
- If you are younger than full retirement age and still working, your earnings above $23,400 in 2025 will reduce benefits: $1 is withheld for every $2 earned over the limit.
- If you are in the year you reach full retirement age, the limit is $62,160, and $1 is withheld for every $3 over the limit until your full retirement age month. Social Security+1
2025 COLA Chart – Sample Monthly Benefits Before & After Increase
After the second heading here is a chart illustrating sample monthly benefit amounts before and after the 2.5% COLA for different beneficiary types:
| Beneficiary Type | Benefit Before COLA (2024) | Increase Amount | Benefit After COLA (2025) |
|---|---|---|---|
| All retired workers | $1,927 | +$49 | $1,976 Social Security |
| Aged couple, both receiving benefits | $3,014 | +$75 | $3,089 Social Security |
| Widowed mother + 2 children | $3,669 | +$92 | $3,761 Social Security |
| Aged widow(er) alone | $1,788 | +$44 | $1,832 Social Security |
| Disabled worker + spouse + child(ren) | $2,757 | +$69 | $2,826 Social Security |
| All disabled workers | $1,542 | +$38 | $1,580 Social Security |
| SSI Federal Payment – Individual | $943 | +$24 | $967 Social Security |
Related Financial Thresholds & Limits in 2025 of social security
- Taxable Maximum Earnings (OASDI only): Raised from $168,600 to $176,100. Social Security+1
- Medicare Tax and Rates: Employee & self-employed rates remain same, but income subject to Social Security tax has increased. Social Security+1
- Disability Income Parameters: Substantial Gainful Activity (SGA) threshold has also increased. Social Security
Impact of the 2025 COLA
- The COLA helps maintain purchasing power as inflation rises. For many retirees and disabled individuals, this adjustment offsets increases in costs for healthcare, utilities, food, etc.
- Some benefits might be reduced due to earnings limits if beneficiaries work while receiving benefits.
- Tax implications: Higher incomes up to $176,100 will be subject to Social Security payroll taxes; if you fall under that, you pay more.
FAQs – Social Security Increase 2025 Chart
Q1: When does the 2025 COLA take effect?
Ans: The 2.5% increase begins with Social Security benefits payable in January 2025. SSI increases start December 31, 2024 for SSI recipients. Social Security+1.
Q2: How is the COLA calculated?
Ans: It’s based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) comparing the third quarter of 2024 with the third quarter of 2023. Social Security+1.
Q3: Will everyone’s benefit rise by the same dollar amount?
A: No. Although everyone gets the same percentage increase (2.5%), the actual dollar increase depends on what your benefit was before the COLA. So someone with higher benefits sees a larger dollar boost.
Conclusion
The 2025 Social Security Increase Chart illustrates a modest but important 2.5% Cost-of-Living Adjustment that applies to eligible Social Security & SSI beneficiaries. While no increase fully removes the pressures of inflation, this raise helps beneficiaries preserve some measure of financial stability in the face of rising costs. The increase in earnings limits and taxable maximums are also noteworthy, especially for those combining work and benefits.