The nation's more than 70 million Social Security recipients may want to temper their expectations about how much of a raise they'll get in 2025. On average, retirees can expect an increase of $48 a month, or 2.5%, according to a projection released Wednesday.
Cost of living adjustments (COLAs) for 2025, which are based on inflation, are projected to be lower than last month. Calculation of 2.57%“The latest projections come just hours after the government reported: Prices rose 2.5% As inflation continues to ease, it is expected to fall in the 12 months to August.
The expected increase isn't official yet, because the Social Security Administration typically determines next year's COLAs in mid-October. The 2.5 percent increase, which equates to an average monthly benefit of $1,968, will be reflected in most recipients' January benefit checks.
The 2.5% increase is less than the 3.2% they will receive in 2024, but it is well within the historical norm, which has averaged about 2.6% over the past 20 years. Ran It fell to 0.0% in 2010, 2011, and 2016, and is expected to rise to 8.7% in 2023.
The Social Security Administration sets annual COLAs based on the inflation rate for the third quarter, or July through September. The agency gets the average inflation rate for that period from the Consumer Price Index for Urban Wage Earners and Clerical Employees (CPI-W), which tracks the expenses of working Americans.
If that inflation rate is higher than the same period last year, your COLA will be adjusted upward by the difference.
“Ensuring that seniors have adequate food and shelter with dignity is the primary reason we advocate for a minimum 3 percent COLA,” said Shannon Benton, executive director of TSCL. statement“Nearly two-thirds of seniors rely on Social Security for more than half of their monthly income, and 28 percent are completely dependent on Social Security,” Benton added, citing a TSCL survey.
