Rise in Average Social Security Checks – What’s Changing for 2025

The Social Security Administration (SSA) has announced a 2.5% cost of living adjustment (COLA) for 2025, allowing recipients to keep pace with rising prices. Although this increase is smaller than the 3.2% adjustment in 2024 and the 8.7% jump in 2023, it reflects a slowing inflation rate.

This modest hike aims to help recipients cover daily expenses while recognizing that Social Security benefits were never designed to replace an entire income, but rather supplement about 40% of a retiree’s earnings.

Payments

The 2.5% increase means a small but notable rise in benefits for recipients. Calculating the increase is simple: multiply the current payment by 2.5%, or 0.025, and then add that amount to the existing benefit.

For instance, a retiree currently receiving an average monthly benefit of $1,920.48 will see a $48.01 increase. This results in a new payment of $1,968.49 per month. While this bump might not cover all rising costs, it helps recipients cope with the ongoing impacts of inflation.

Impact

The new COLA applies across the board to all benefits distributed by the SSA, ensuring that various recipients—from retirees to surviving family members—experience a proportional increase in their monthly payments.

Spousal Benefits

Retired workers will see their monthly benefits increase, and so will their spouses. Spouses are eligible to receive 50% of the retired worker’s benefit. Thus, for a worker receiving the new average payment of $1,968.49, the spouse would receive $932.52 per month.

Eligible children of retired workers will receive $915.00 monthly.

Survivor Benefits

Survivor benefits, intended for the family members of deceased workers, will also be adjusted. Children will now get $1,131.18 monthly, while widowed spouses will receive $1,318.31. Nondisabled widows or widowers can expect to receive $1,829.17, and disabled surviving spouses will get $950.90 per month. Parents of deceased workers will see their payments rise to $1,660.08.

Disability Insurance

Disabled workers and their families will benefit from the COLA. Disability Insurance recipients will see their average monthly payment increase to $1,578.42. Spouses or main caregivers will get $432.12 per month, while dependent children will receive $504.33.

SSI

Supplemental Security Income (SSI) payments will also increase. Adults receiving SSI will get $715.97 monthly, while children under 18 will receive $841.22. SSI recipients aged 65 and older will see their payments adjusted to $589.45.

The first SSI payment for 2025 will be deposited on December 31, 2024, because January 1 is a national holiday. This early payment is a common practice to ensure beneficiaries receive funds on time when holidays affect banking operations.

Challenges

The purpose of COLA is to offset inflation’s impact on purchasing power, not significantly improve recipients’ financial standing. The recent increase is more modest than previous years, reflecting slower inflation, yet some retirees may still struggle as costs for essentials like healthcare, housing, and food continue to rise.

COLA increases follow the inflation trend, meaning benefits might not keep pace with spikes in prices that have already occurred. For retirees relying solely on Social Security, it may feel like playing catch-up rather than getting ahead.

Ultimately, Social Security benefits aim to supplement retirement income, not replace it entirely. Financial planning should include additional savings or investments to cover expenses, especially during periods of high inflation.

The latest adjustment is a step in the right direction for keeping up with rising costs, but it’s important to remember that it’s just one piece of the puzzle in ensuring financial security during retirement.

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