If you receive Social Security benefits, you might have noticed a small increase in your monthly payment. This is due to the 2025 Cost-of-Living Adjustment (COLA), which went into effect in January. The 2.5% increase aims to help beneficiaries keep up with rising prices.
Although the increase is smaller than in previous years, it still provides some extra financial support. If you haven’t received your updated payment yet, there might be a few reasons why.
Why Did COLA Increase in 2025?
Each year, the Social Security Administration (SSA) adjusts benefits based on inflation. This is done using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The goal is to ensure that Social Security payments keep up with the cost of living.
The 2.5% increase in 2025 is lower than the 3.2% boost in 2024 and much smaller than the 8.7% rise in 2023. A lower COLA suggests that inflation is slowing down, which can be a good sign for the economy. However, some seniors argue that the increase is still not enough to cover essential expenses like groceries and medical bills.
Which Benefits Are Affected by COLA?
COLA doesn’t just impact Social Security checks. Other government benefits also adjust for inflation. These include:
- Social Security Disability Insurance (SSDI)
- Supplemental Security Income (SSI)
- Medicare
- Supplemental Nutrition Assistance Program (SNAP)
If you receive any of these benefits, your payments should reflect the new COLA amount.
Managing your Social Security benefits online has never been easier. You can now apply for five different benefits directly on the Social Security website without visiting an office.
Historical COLA Increases (2020 – 2025)
| Year | COLA Increase |
| 2025 | 2.5% |
| 2024 | 3.2% |
| 2023 | 8.7% |
| 2022 | 5.9% |
| 2021 | 1.3% |
| 2020 | 1.6% |
The sharp rise in 2023 was due to high inflation, but the recent lower increases suggest more stable prices.
What If You Haven’t Received Your Updated Check?
If your payment hasn’t arrived yet, here are a few things to check:
- Make sure your banking details are correct if you receive direct deposits.
- If you receive paper checks, allow extra time for mail delays.
- Check if your benefits were suspended due to missed paperwork or eligibility changes.
- Contact the Social Security Administration if there’s an issue with your payment.
Predictions for the 2026 COLA
Experts predict that the 2026 COLA increase will be around 2.1%, making it the lowest since 2021. Many seniors believe that the COLA formula should be adjusted to better reflect their expenses, such as healthcare costs.
At the same time, some policymakers are pushing for changes, such as eliminating taxes on Social Security benefits, which could save retirees up to $3,000 per year.
If you receive Supplemental Security Income (SSI), it’s important to stay updated on changes in payment schedules. The US government has announced an important change in the SSI payment date for March 2025. Make sure to check how this may affect your benefits.
FAQs
Will everyone get the same COLA increase?
No, the percentage increase is the same, but the actual dollar amount depends on your current benefit.
How do I check my new Social Security payment amount?
You can log into your Social Security account online or check your mailed benefits statement.
Will COLA increases continue every year?
Yes, the Social Security Administration adjusts benefits annually based on inflation trends.