The January 2025 cost-of-living adjustment and payment schedule

Social Security payments increased by 2.67% in January 2025, the annual cost-of-living adjustment (COLA) that takes effect each year. If you received a payment in December 2024, your January payment reflected this increase. The exact dollar amount depends on your benefit type and your individual earnings record — there is no single payment amount that applies to everyone.

Most beneficiaries received their January payment on their regular schedule: the second, third, or fourth Wednesday of the month, depending on their birth date. If your birthday falls between the 1st and 10th of the month, you received payment on the second Wednesday. Between the 11th and 20th means the third Wednesday. Between the 21st and 31st means the fourth Wednesday. Supplemental Security Income (SSI) recipients received payments on the first of the month.

The 2.67% increase is smaller than the 2024 COLA of 3.2%, which reflects lower inflation over the past year. This adjustment affects retirement benefits, survivor benefits, and disability benefits equally — the percentage increase applies across all benefit types.

Key Takeaways

  • All Social Security beneficiaries saw a 2.67% payment increase in January 2025, applied automatically with no action required on your part.
  • Your payment date depends on your birth date and does not change month to month — check your Social Security statement or my Social Security account to confirm yours.
  • If you work and earn above the earnings limit, Social Security will withhold $1 for every $2 you earn over the limit in the year you reach full retirement age.
  • Medicare premiums for 2025 may have changed, and your Social Security payment may be reduced if you are enrolled in Part B or Part D coverage.
  • You can view your exact January payment amount and verify your payment date by logging into your my Social Security account online.

How the 2.67% increase was calculated

The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured from the third quarter of one year to the third quarter of the next. The Social Security Administration announced the 2.67% figure in October 2024, based on inflation data from July through September 2024 compared to the same months in 2023.

This percentage applies to your Primary Insurance Amount (PIA) — the benefit you are may have access to to based on your work record. If you claimed benefits early, at full retirement age, or after full retirement age, the 2.67% increase applies to whatever your monthly amount was in December 2024. The adjustment is permanent; your new amount becomes your baseline for future years.

Beneficiaries who were already receiving payments in December 2024 saw the increase automatically. If you began receiving benefits in January 2025 or later, your initial payment already reflects the 2025 benefit formula and does not receive a separate COLA bump.

Earnings limits and work in 2025

If you are under full retirement age and still working, Social Security limits how much you can earn without a reduction to your benefits. For 2025, the earnings limit is $23,400 per year. If you earn more than this amount, Social Security withholds $1 in benefits for every $2 you earn above the limit.

The earnings limit applies only in the year you reach full retirement age, up until the month you turn full retirement age. Once you reach full retirement age, there is no earnings limit — you can work and earn any amount without a reduction to your benefits. This rule applies whether you are working as an employee or self-employed.

Only earned income counts toward the limit. Investment income, pensions, annuities, and rental income do not reduce your benefits. If you are unsure whether your income counts, contact Social Security directly at 1-800-772-1213 or visit your local office.

Medicare premium changes affecting your payment

Your Social Security payment may be lower than the 2.67% increase suggests if your Medicare premiums changed in January 2025. Most beneficiaries have Part B premiums deducted directly from their Social Security payment. The standard Part B premium for 2025 is $174.70 per month, though higher-income beneficiaries pay more through Income-Related Monthly Adjustment Amounts (IRMAA).

Part D prescription drug coverage premiums also vary by plan and by individual income. If you switched plans during the annual enrollment period (October 15 through December 7, 2024), your new premium took effect in January 2025. Some beneficiaries pay nothing for Part D if they may have access to for the Low-Income Subsidy program, while others pay the full plan premium.

If your net payment (after Medicare deductions) did not increase by 2.67%, check your Social Security statement to see what was deducted. You can view a detailed breakdown in your my Social Security account or by calling Social Security at 1-800-772-1213.

Changes to the Supplemental Security Income (SSI) program

SSI recipients also received the 2.67% COLA increase in January 2025. The federal benefit rate for an individual is now $943 per month, and for a couple it is $1,415 per month. These are the maximum amounts; your actual payment depends on your countable income and resources.

SSI has strict resource limits: $2,000 for an individual and $3,000 for a couple. If your resources exceed these amounts, you become ineligible. The resource limit itself does not increase with COLA, but certain excluded resources (like a home you live in, one vehicle, and items set aside for work) are not counted toward the limit.

If you receive both SSI and Social Security, the increase to your Social Security payment may reduce your SSI payment dollar-for-dollar, since Social Security is counted as income. Contact your local Social Security office if you need help understanding how the increase affects your SSI amount.

What to do if your payment seems incorrect

Log into your my Social Security account at ssa.gov to view your January 2025 payment amount and verify it matches what you expected. Your account shows your payment history, your next scheduled payment date, and any deductions for Medicare or other withholdings. If you do not have an account, you can create one using your email address and Social Security number.

If your payment is lower than expected and you cannot see why from your account, call Social Security at 1-800-772-1213. Have your Social Security number ready and be prepared to describe what you expected versus what you received. Social Security representatives can explain deductions, address changes, or other factors that may have affected your payment.

If you did not receive a payment on your expected date, check your account first to confirm the payment date for your birth date. Payments can take an extra day or two to appear in your bank account depending on your bank. If the payment is more than three days late, contact Social Security immediately.

Planning ahead for 2025 taxes and reporting requirements

If you receive Social Security benefits and have other income, you may owe federal income tax on part of your benefits. Social Security sends Form SSA-1099 by January 31 each year showing your 2024 benefit payments. You will use this form to file your 2024 tax return, which is due April 15, 2025.

The amount of your benefits that is taxable depends on your "combined income" — your adjusted gross income plus nontaxable interest plus half your Social Security benefits. If your combined income exceeds certain thresholds ($25,000 for a single filer, $32,000 for married filing jointly), up to 50% or 85% of your benefits may be taxable. The IRS website and your tax software can help you calculate this.

If you work and earn income above the earnings limit, you must report your earnings to Social Security. You can report online at ssa.gov, by phone at 1-800-772-1213, or in person at your local office. Reporting early helps Social Security adjust your payment correctly and avoid overpayments you would have to repay later.

Frequently Asked Questions

Will my payment increase by exactly 2.67%?

Your payment will increase by 2.67% unless Medicare premiums or other deductions changed. If your Part B or Part D premium went up, your net increase (the amount that actually hits your bank account) will be less than 2.67%. Check your my Social Security account to see the exact deductions applied to your January payment.

What if I did not receive a payment in January?

If you recently began receiving benefits, your first payment may arrive in February. Social Security typically processes new claims within 2 to 4 weeks. If you expected a payment and did not receive one, log into your my Social Security account to check your payment status, or call 1-800-772-1213 to confirm your payment date.

Can I get back pay for the COLA increase if I just started benefits?

No. The COLA applies to your benefit amount going forward, not retroactively. If you began receiving benefits in January 2025 or later, your initial payment already includes the 2025 benefit formula. You do not receive a separate COLA bump on top of that.

Does the earnings limit apply to me if I am already at full retirement age?

No. Once you reach full retirement age, there is no earnings limit. You can work and earn any amount without a reduction to your benefits. The limit applies only to beneficiaries under full retirement age in the year they reach it.

How do I know if my Medicare premium increased?

Medicare sends a notice (CMS-L564) by December 1 each year showing your 2025 premiums. Check your mail or log into your Medicare account at Medicare.gov. If you enrolled in a new Part D plan during open enrollment, your premium changed to match that plan. Your Social Security statement shows the exact amount deducted each month.