What the 2025 Social Security COLA Means for Your Benefits

Millions of Americans currently depend on Social Security Income (SSI) benefits as part of their financial stability. SSI benefits are provided by the Social Security Administration (SSA) and are adjusted yearly by the current cost-of-living adjustment (COLA).

The COLA changes annually based on the Consumer Price Index for Urban Wage Earners and Clerical Workers – basically, it adjusts to the yearly inflation rate so that your benefits rise as the cost-of-living rises. In celebrating the new year, it is important to also become aware of the COLA changes impacting SSI benefits.

What Is the 2025 Social Security COLA Update?

As the inflation rate this past year has cooled back down to nearly normal levels, the 2025 COLA is 2.5%, meaning the SSA will be increasing Social Security benefits and SSI payments by 2.5% over 2024 levels. This will lead to an average increase in Social Security retirement benefits of about $50 per month.

The COLA is automatically applied to the benefits, meaning the higher payments can be expected in January 2025. So, if you were hypothetically earning payments of $1,000 in Social Security benefits in 2024, you may now be getting payments of $1,025 in 2025.

Who Will Be Impacted By This Change?

In determining who will see the rise in benefits, it is important to understand who is eligible for payments from the SSA.

Approximately 68 million Americans rely on retirement benefits and 7.5 million earn SSI benefits. Both of these benefits use the COLA to determine the size of payments to recipients and some individuals receive both forms of payment. So, in total, about 72.5 million Americans are expected to see an increase in their benefit payments from the SSA in 2025.

How Do I Know If I Will Get A COLA Increase?

The SSA wants to ensure that Americans are able to remain financially stable regardless of what the inflation rate is. As of early December, in order to maintain a transparent and clear process in adjusting the benefits, the SSA has begun notifying people about their new benefit amount by mail.

Additionally, the SSA has created the my Social Security account portal. An account needed to be set up by November 20th and can be accessed through http://www.ssa.gov/myaccount. On this online account, you will be able to view your COLA notice online and understand the changes being made to your benefits.

Work With a Social Security Attorney on Your Application for the 2025 COLA-Adjusted Benefits Scale

If you or a loved one is disabled and unable to work or are in need of low-income financial assistance, you may be eligible for Social Security benefits. Having an experienced attorney to guide you through the application process can significantly decrease the stress and confusion associated with the application. You do not have to do it alone.

At Jan Dils, we have an experienced team of attorneys ready to ensure you get the benefits that you deserve, which will see a slight increase due to the 2025 COLA. Not only are we here to represent clients in West Virginia, but we have the capabilities to represent clients nationwide! Contact us today to get our help in securing your much-needed benefits.