Social Security benefits will increase by 2.5% in 2025, according to the Social Security Administration (SSA). This cost-of-living adjustment (COLA) is designed to help benefits keep pace with inflation. In 2022, around 70.6 million Americans received Social Security benefits.
The average monthly benefit for retired individuals in 2024 was about $1,927. With the 2.5% increase, this amount will rise to $1,976 per month in 2025, resulting in an extra $50 per month. However, many seniors say the adjustment is not enough to keep up with rising costs, especially for healthcare and other age-related expenses.
Nancy Altman, president of Social Security Works and chair of the Strengthen Social Security Coalition, argues that the current COLA formula does not fully reflect the spending patterns of older Americans.
Social Security benefit increase in 2025
She suggests using the Consumer Price Index for Elderly Consumers (CPI-E) instead, which better captures the expenses of people aged 62 and over.
Sherri Myers, an 82-year-old resident of Pensacola, Florida, relies on a small pension and Social Security benefits. She finds that the upcoming increase will barely help with her daily expenses. “Inflation has eaten up my savings.
I don’t have anything to fall back on — the cushion is gone,” she said. To make ends meet, she is thinking about going back to work despite her age. As inflation continues to affect the economy, there are ongoing discussions about improving the COLA formula and increasing benefits to better support seniors.
But for now, the small increase set for 2025 is all that many elderly Americans can count on to help manage their rising living costs.
Noah Nguyen is a multi-talented developer who brings a unique perspective to his craft. Initially a creative writing professor, he turned to Dev work for the ability to work remotely. He now lives in Seattle, spending time hiking and drinking craft beer with his fiancee.
