2025 social security cola increase

The 2025 Social Security cost-of-living adjustment will be announced tomorrow. We'll tell you what to expect and how much is predicted to be added to next year's checks.
       

A man in a suit standing in front of a large clock holding the clock arm in place with a large Social Security card in the background.

The cost-of-living adjustment for Social Security will be officially announced in early October, but you can check out predictions now.
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The Social Security Administration is set to announce the 2025 cost-of-living adjustment increase tomorrow, and recipients will have a better idea of how much more money that will be added to the checks each month in the new year. 



While the official announcement is tomorrow, experts have been making their predictions for what the 2025 COLA increase might be for months now, so we have a decent idea of what to expect. Below are the latest predictions of what the COLA increase could be next year. We'll also answer some commonly asked questions you may have. You can also check back here for the official COLA announcement tomorrow. 

For more, don't miss the Social Security payment schedule and the SSI payment schedule.

What is the Social Security COLA?
The SSA determines the COLA from the increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers, which is a measure of the average change in prices for consumer goods and services, released monthly by the Bureau of Labor Statistics. There are other factors for determining the COLA, but it's essentially put in place to account for inflation and will increase the benefit payments for beneficiaries receiving Social Security and Supplemental Security Income.

Announced in October, the COLA goes into effect January of the following year. 

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than the past few years, 2.5% is still within the 20-year historical average of 2.6%. 

A 2.5% increase is likely lower than desired for beneficiaries, but there's more to the story. A lower COLA is a sign of lowering inflation, which could translate to a price reduction of some of your daily essentials. 

It's also important to keep in mind that the $48 increase is for the average monthly benefit and your exact monetary bump is dependent on a few factors. For instance, for retirement benefits, if you wait until you're 70 years old before you apply, you'll get a larger monthly check versus if you apply as soon as you qualify -- at 62. 
  


The adjustment is closely watched by seniors because the annual COLA change is designed to help them keep up with rising costs. The annual COLA increase has been as high as 8.7% in recent years, but some say it's not enough to cover inflation. According to a Senior Citizens League survey, 69% of respondents said their household costs rose faster than the COLA last year, with costs for food and housing leading the way.

COLA Increases Year Over Year
Year Increase over previous year
2024 3.2%
2023 8.7%
2022 5.9%
2021 1.3%
2020 1.6%
Keep in mind that these are estimates that can change every month based on the previous month's inflation rate, and although they tend to be somewhat in line with the official rate, they're not always spot on. 

For more, find out what to do if you never received your Social Security check and how to determine your Social Security benefits with this free tool.