Cost-of-Living Adjustments (COLA) Update for 2025

Social Security and Supplemental Security Income (SSI) benefits for more than 72.5 million Americans will increase 2.5 % in 2025.

The 2.5 % cost-of-living adjustment (COLA) will begin with benefits payable to nearly 68 million Social Security beneficiaries in January 2025. Increased payments to nearly 7.5 million SSI recipients will begin on December 31, 2024.

Some of the same people receive both Social Security and SSI benefits.

The maximum amount of earnings subject to the Social Security tax (taxable maximum) was increased to $176,100.

The earnings limit for workers who are younger than “full” retirement age (66 – 67 depending on your date of birth) increased to $23,400. Social Security deducts $1 from benefits for each $2 earned over $23,400. The earnings limit for people reaching their “full” retirement age in 2025 increased to $62,160. Social Security deducts $1 from benefits for each $3 earned over $62,160 until the month the worker turns “full” retirement age. There is no limit on earnings for workers who are “full” retirement age or older for the entire year.

As of December 2024, Social Security COLA notices are available online to most beneficiaries in the Message Center of their “my Social Security” account.

For more information on the Cost of Living Increase, please visit:
https://www.ssa.gov/cola