The 2025 COLA is 2.67 percent

Social Security benefits increased by 2.67 percent in January 2025. This annual adjustment is called the Cost-of-Living Adjustment (COLA), and it is meant to help benefits keep pace with inflation. The exact percentage changes each year based on how much prices rose from the third quarter of one year to the third quarter of the next.

If you received Social Security retirement, disability, or survivor benefits in December 2024, your January 2025 payment was automatically higher by 2.67 percent. You did not need to do anything to receive it. The increase applied to Supplemental Security Income (SSI) payments as well.

The 2025 COLA is smaller than the 2024 increase of 3.2 percent, which reflected higher inflation in 2023. It is also smaller than the 2023 increase of 8.7 percent, which was the largest COLA in four decades.

Key Takeaways

  • Your January 2025 Social Security payment was 2.67 percent higher than your December 2024 payment if you were receiving benefits.
  • The COLA is calculated automatically each year and applies to all benefit types — retirement, disability, survivor, and SSI.
  • You can see your new benefit amount on your Social Security statement, which you can check online at ssa.gov or request by mail.
  • The COLA does not affect your Medicare premiums in the same way it affects your cash benefit, so your net increase may be different.

How the COLA is calculated each year

The Social Security Administration calculates the COLA by comparing the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July, August, and September of one year to the same three months of the previous year. If prices went up, benefits go up by that same percentage. If prices stayed flat or fell, there is no COLA — though this has not happened since 1975.

The CPI-W measures what people pay for food, housing, transportation, medical care, and other goods and services. It is published by the Bureau of Labor Statistics, a federal agency that tracks prices across the country. Social Security uses this specific index because it was designed to track the spending patterns of wage earners, which historically matched the population receiving Social Security.

The Social Security Administration announces the COLA in October of each year, and it takes effect the following January. This means the 2025 COLA was announced in October 2024, based on price data from mid-2023 and mid-2024.

What changed in your benefit amount

Your new benefit amount depends on what you were receiving in December 2024. If you got $1,500 a month, your January 2025 payment is roughly $1,540. If you got $2,000, your new payment is roughly $2,053. The exact amount depends on rounding and on whether you also receive other payments that affect your total.

You can see your exact new benefit amount on your Social Security statement. To check it, go to ssa.gov, create or log into your account, and select "View Your Statement." If you do not have an online account, you can call Social Security at 1-800-772-1213 or visit your local Social Security office to request a paper statement.

If you are receiving both Social Security and Supplemental Security Income (SSI), both payments increased by 2.67 percent. The federal SSI payment amount for 2025 is $943 per month for an individual and $1,415 for a couple, before any state supplements.

How the COLA affects your Medicare costs

The COLA increased your cash benefit, but it does not automatically lower your Medicare premiums. Instead, Medicare uses a rule called the hold harmless provision that protects most people from paying higher premiums than their COLA increase.

Here is how it works: if your Medicare Part B premium would normally go up more than your COLA increase, hold harmless means you only pay the amount of your COLA increase, and Medicare covers the rest. However, if your premium stays the same or goes down, you keep the full COLA. And if your premium goes up less than your COLA, you keep the full COLA and your net benefit goes up.

For 2025, the Medicare Part B premium is $174.70 per month for most people, which is higher than the 2024 premium of $164.90. If you are subject to hold harmless, your increase will be limited to your 2.67 percent COLA. If you are not subject to hold harmless — for example, if you are newly enrolled in Medicare or have higher income — you will pay the full new premium.

COLA history and why it matters

The COLA was introduced in 1975 to prevent benefits from losing value as prices rose. Before that, Congress had to pass a new law each time it wanted to increase benefits, which meant some years people received no increase at all. The automatic adjustment means your benefit keeps some purchasing power over time, though it does not always match the actual inflation you experience.

The COLA varies significantly from year to year. In recent history: 2024 was 3.2 percent, 2023 was 8.7 percent, 2022 was 5.9 percent, 2021 was 1.3 percent, and 2020 was 1.6 percent. The 2025 COLA of 2.67 percent reflects lower inflation in 2024 compared to 2023.

Over decades, the COLA has helped Social Security benefits stay roughly aligned with inflation, though the alignment is imperfect. Some people spend more on medical care or housing than the average, so the COLA may not cover their actual cost increases. Others spend less on the items that saw the biggest price jumps, so the COLA may overstate their inflation.

Where to find your new benefit information

Your Social Security statement shows your benefit history, your current payment amount, and estimates of what you might receive at different ages if you have not yet claimed. You can access it online at ssa.gov by creating a "my Social Security" account. The account also lets you change your address, report a change in work status, or request a replacement Social Security card.

If you prefer not to use the online portal, you can call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) Monday through Friday, 7 a.m. to 7 p.m. Eastern time. You can also visit your local Social Security office in person. To find the office nearest you, go to ssa.gov/locator.

If you receive benefits by direct deposit, the new amount should appear in your bank account on the third of the month (or the first business day after if the third falls on a weekend or holiday). If you receive a paper check, it will arrive by mail on the third of the month.

Frequently Asked Questions

Does the COLA apply if I haven't started taking Social Security yet?

No. The COLA only applies to people who are already receiving benefits. If you have not yet claimed Social Security, your future benefit amount will be calculated based on your earnings record and the age at which you claim. However, your Primary Insurance Amount (the benefit you would receive at full retirement age) is adjusted for inflation each year, so waiting to claim may result in a higher benefit.

Why is the 2025 COLA smaller than last year?

The COLA reflects inflation from mid-2023 to mid-2024, which was lower than inflation from mid-2022 to mid-2023. The 2024 COLA of 3.2 percent was based on a period of higher price increases. Inflation has slowed since then, so the 2025 COLA is smaller.

Will my Medicare premium go up more than my COLA increase?

For most people, no. The hold harmless provision protects you from paying a premium increase larger than your COLA. However, if you are newly enrolled in Medicare, have higher income, or are in certain other situations, you may not be protected. Check your Medicare Summary Notice or call Medicare at 1-800-MEDICARE to confirm whether hold harmless applies to you.

Can I check my new benefit amount before January?

Yes. Your Social Security statement online shows your current benefit amount, which reflects the 2025 COLA if you are already receiving benefits. If you created your account before January 2025, you may need to log out and log back in to see the updated amount.