Social Security COLA Increase Announced

Retirees will see their Social Security benefits increase with the annual cost-of-living adjustment taking effect in January.

The Numbers

The 2025 COLA brings a 2.5% increase to benefit checks, slightly lower than recent years but still providing meaningful relief against inflation. For the average retiree receiving $1,900 monthly, this translates to roughly $48 more per month.

Maximum benefits at full retirement age now exceed $3,800 monthly for those who delayed claiming and had high lifetime earnings.

Medicare Considerations

Part B premiums typically increase alongside Social Security COLAs. Review your Medicare coverage options during open enrollment to ensure you’re optimizing healthcare costs against your increased benefits.

Those still working should note that the earnings test limit also increased, allowing more income before benefit reductions apply to early claimers.