2025 Social Security COLA Increase

Every year, the Social Security Administration (SSA) adjusts its benefits value to account for inflation and rising costs of living. This cost-of-living adjustment (COLA) increases the benefits amounts and the income limits for retired workers and Social Security beneficiaries, including Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).

The updated payment amount will be applied to your benefits automatically, so you don’t need to do anything to receive it.

How much is the 2025 Social Security COLA?

The SSA has announced the 2025 COLA increase will be 2.5%. COLA adjustments are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures how much prices change over time for everyday goods and services.

The SSA's latest data shows the average monthly Social Security benefits check in August was $1,783.55. A 2.5% cost-of-living adjustment would raise the average monthly check by $44.59 next year.

“Social Security benefits and SSI payments will increase in 2025, helping tens of millions of people keep up with expenses even as inflation has started to cool,” said Martin O’Malley, Commissioner of Social Security, in a statement.

COLA increases

A COLA increase of 2.5% is the lowest since 2021 but is fairly close to the 20-year average of 2.6%.

How much will Social Security benefits be in 2025?

The Social Security cost-of-living adjustment of 2.5% will make the maximum SSI payment $966, compared to $943 in 2024. The increase would bump the maximum SSDI benefits amount to $3,917, up from $3,822 in 2024.

How much is the SGA limit for 2025?

The limit for substantial gainful activity (SGA) in 2025 will be $1,620 for non-blind individuals, up from $1,550 in 2024. For statutorily blind individuals, the SGA limit for SSDI is $2,700. SGA is any work you do that is substantial or gainful, meaning it requires physical or mental effort in exchange for payment. Basically, SGA is the amount of money you can earn each month while still qualifying for benefits.

To calculate your SGA, the SSA typically considers your gross income before taxes. If you’re self-employed, the SSA evaluates your profit, which is your total income minus operating expenses. While you can work while receiving disability, it's important to be mindful of the SGA limit. Earning close to this amount can attract the attention of the SSA, and you might lose your benefits.

2025 COLA impact

In our recent study, concerns about the 2025 COLA projections were evident, with three out of five Social Security beneficiaries expressing worry. Nearly 60% of the beneficiaries polled are looking into ways to secure an additional income course to offset the small benefits increase in 2025.

Will VA disability benefits increase in 2025?

Yes, Veterans' Disability Compensation benefits will also increase by 2.5% in 2025. The Department of Veterans Affairs, which administers VA benefits, adjusts the benefit amounts annually based on the Social Security COLA following President Biden's signing of the Veterans Compensation Cost-of-Living Adjustment (COLA) Act of 2023.

How do I find my 2025 benefit amount?

Your exact Social Security payment amount depends on several factors, including your work history and income. To find your monthly benefit amount, create a mySocialSecurity account on SSA.org.

You can also estimate your benefits payment using this benefits calculator.