2025 Social Security COLA: Top 5 Questions, Answers

Social Security serves as a critical source of income for millions of retired seniors. And for those who rely heavily on these benefits to pay the bills, annual raises are often the difference between being able to make ends meet and struggling financially.

Each year, Social Security benefits are eligible for a cost-of-living adjustment, or COLA. COLA should help recipients keep up with inflation so they don’t fall behind as the cost of living naturally rises over time.

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Now that we’re approaching 2025, you may be anxious to learn more about next year’s Social Security COLA. Here are the answers to some of the burning questions you may have.

1. When will an official COLA be announced?

Social Security COLAs are calculated based on third quarter inflation data. For this reason, the Social Security Administration (SSA) cannot issue an official COLA before October. And the exact date of a COLA announcement depends on when inflation data for September becomes available. This year, these dates will be published on October 10.

2. How much should I expect from a COLA?

The Social Security COLA is based on inflation changes in July, August, and September. There is no September reading yet, but this data is available for July and August. And based on what’s known so far, experts are calling for a 2.5 percent Social Security COLA in 2025.

However, that number could move up or down depending on how an official inflation reading for September shakes out. Either way, though, you should expect the 2025 Social Security COLA to be lower than the 3.2% increase that came in early 2024.

3. When will my COLA go into effect?

COLA launches at the beginning of the new year. Therefore, the first monthly Social Security payment you receive in 2025 should be higher.

4. How much will my monthly Social Security check increase after the 2025 COLA is applied?

How much your monthly Social Security payments will increase in 2025 will depend on several factors. These include an official COLA number if you are enrolled in Medicare and if the cost of Part B increases in 2025.

To give you an idea of ​​what to expect, if you collect $2,000 in Social Security today, a 2.5% COLA would initially increase your monthly benefit by $50. If you are not yet enrolled in Medicare, this $50 increase should remain. If you’re enrolled in Medicare, that means you automatically pay your Part B premiums from your Social Security checks. If the cost of Part B increases by $10 per month in 2025, then your $50 increase will be reduced to $40.

5. How can I find out about COLA 2025 once the details become available?

As mentioned, the SSA will make an official COLA announcement on October 10th. Your best bet is to start by checking the news section of the SSA website for information on the day. There is a chance that the update will be available elsewhere on the site, but the news section is generally the right source for updates of this nature.

Soon, everyone should have more clarity on next year’s Social Security COLA. For now, you can use the information above to start making financial decisions for 2025 — or at least to give you an idea of ​​what kind of changes you might be looking at.