Social Security beneficiaries will see a welcomed boost in their payments this year, thanks to a 2.5% Cost-of-Living-Adjustment (COLA) for 2025. Starting this Wednesday, select beneficiaries will receive payments up to $5,108.
The COLA, a measure to help combat inflation, was first introduced in 1975. It automatically adjusts Social Security and Supplemental Security Income (SSI) payments each year, ensuring that beneficiaries keep pace with rising costs.
The Social Security Administration announced the 2.5% COLA adjustment last October, with the increase affecting nearly 68 million Americans. For most recipients, this means higher monthly checks. The average monthly benefit has risen from $1,927 in 2024 to $1,976 for 2025.
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Maximum Payments Rise
The maximum monthly benefit for those retiring at age 70 has increased as well, rising to $5,108—a significant jump from $4,873 in 2024.
For individuals retiring at their full retirement age (FRA), the maximum monthly benefit will now be $4,018. This is up from $3,822 last year.
The FRA varies depending on the year of birth:
- Born between 1943 and 1954: Age 66
- Born between 1955 and 1959: FRA increases by two months each year, beginning at 66 and 2 months for those born in 1955 and increasing each year.
- Born in 1960 or later: FRA is 67.
For those retiring at FRA, the monthly Social Security cap for 2025 is set at $2,831, up from $2,710 in 2024.
Boosted Payments Rolling Out
This year’s first two rounds of COLA increases were already distributed on January 8 and January 15. The third round is scheduled for January 22, when beneficiaries whose birthdays fall between the 11th and 20th of the month will see their payments.
The Social Security Administration distributes payments in three separate rounds each month based on birth dates:
- 1st to 10th of the month: Payments are issued on the second Wednesday.
- 11th to 20th of the month: Payments are issued on the third Wednesday.
- 21st to 31st of the month: Payments are issued on the fourth Wednesday.
Social Security Tips
Social Security expert Shalae Morgan offered insight into maximizing Social Security benefits. Morgan warned that mistakes could result in losing out on thousands of dollars each year. She also discussed strategies for planning ahead to increase benefits, including the impact of delaying payments. For instance, delaying benefits could result in an additional $26,000 annually.
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For those aiming to make the most of their Social Security benefits, Morgan’s advice is invaluable for long-term planning .
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