In 2025, Social Security and Supplemental Security Income (SSI) benefits saw a 2.5% cost-of-living adjustment (COLA), impacting over 72.5 million Americans. This increase helps beneficiaries keep up with inflation and rising living costs.
Whether you receive retirement, disability (SSDI), or survivor benefits, here’s how the COLA increase affects your monthly payments.
Payment Increases
The Social Security Administration (SSA) implemented the 2.5% COLA increase for nearly 68 million Social Security beneficiaries starting in January 2025. Meanwhile, 7.5 million SSI recipients started receiving higher payments on December 31, 2024.
Here’s how the average Social Security benefits changed with the 2.5% increase:
| Benefit Type | 2024 Amount | 2025 Amount (with 2.5% COLA) |
|---|---|---|
| Retirement | $1,976 | $2,025 |
| SSDI | $1,620 | $1,660 |
Additionally, the maximum monthly benefits after the COLA adjustment are:
| Retirement Age | Maximum Monthly Benefit (2025) |
|---|---|
| 70 | $5,108 |
| 67 | $4,018 |
| 62 | $2,831 |
Payment Date
The SSA will issue its final March 2025 payment on Wednesday, March 26. If you qualify, you could receive up to $5,108, depending on your earnings history and when you retired.
If your birthday falls between March 21 and 31, you can expect to receive around $2,025 on March 26.
Retroactive Payments
The Social Security Fairness Act is also bringing retroactive payments to certain beneficiaries affected by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) repeal.
Here’s what to expect:
- Lump-Sum Back Payment – The average retroactive payment is $6,710, covering benefits withheld since December 2023.
- Higher Monthly Benefits – Starting with the April 2025 payment (for March benefits), affected beneficiaries will see an increase in their regular Social Security checks.
- Payment Timing – If you are eligible but have not yet received your retroactive payment, it may be deposited into your bank account on March 26 or later in the month.
Benefit Amount
Your exact Social Security payment depends on factors like:
- Your work history
- Your retirement age
- Whether you qualify under the Social Security Fairness Act
For more details, visit the SSA’s Equity Act page to see if you qualify for additional benefits.
The COLA increase and retroactive payments are a financial boost for many retirees and SSDI recipients. Keeping track of these updates ensures you receive the correct amount and can plan your finances accordingly.
FAQs
How much did Social Security increase in 2025?
Social Security benefits increased by 2.5% due to the COLA adjustment.
When will the final March 2025 payment be sent?
The last March payment will be issued on March 26, 2025.
What is the maximum Social Security benefit in 2025?
The maximum benefit is $5,108 for those who retire at age 70.
What is the average Social Security payment in 2025?
The average retirement benefit is about $2,025 per month.
Who qualifies for retroactive Social Security payments?
Beneficiaries affected by the repeal of WEP/GPO may receive back pay.
