Social Security provides benefits to over 71 million Americans, including retirees, veterans, and dependents. Benefits are initially calculated based on a worker’s earnings record. However, to prevent these payments from losing value over time, annual cost-of-living adjustments (COLA) were introduced by legislation in 1973 and began in 1975. The COLA varies each year. For 2024, the Social Security COLA was 3.2%.
Estimated COLA for 2025
Current estimates suggest a 2.57% COLA increase for 2025, which would add approximately $50 per month to benefits, according to the Detroit Free Press. However, the Seniors League’s 2024 Loss of Buying Power study indicates that this increase would fall short of covering rising costs for older adults. The study estimates that retirees would need an additional $370 per month to maintain the same buying power they had in 2010. This estimate does not account for potential increases in Medicare Part B premiums.
Current Social Security Payments
Payments vary based on several factors, including years worked, total Social Security taxes paid, and retirement age:
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Retired Workers: Approximately $1,907 per month
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Retired Couples (filing jointly): Around $3,303 per month
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Survivor Benefits: Average of $1,509.50 per month
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Spouses of Retired Workers: Average of $910 per month
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Children of Retired Workers: Average of $892.39 per month
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SSI Beneficiaries (Individuals): Average of $943 per month
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SSI Beneficiaries (Couples): Average of $1,415 per month
Related resources
The current forecast for the 2025 COLA increase is 2.57%.
Contributing: USA Network reporter Brandi D. Addison
This article originally appeared on Rochester Democrat and Chronicle: How much will Social Security benefits increase? See COLA calculator