Thousands of Social Security beneficiaries in Mississippi can expect positive changes in 2025. The SSA has announced an increase in benefits to help individuals manage their expenses more comfortably. If you are living in Mississippi and rely on Social Security here’s what you need to know about the upcoming changes.
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Increased benefits for Mississippi residents
Social Security benefits will see a 2.5% COLA starting in January 2025. This means an average increase of about $50 per month for beneficiaries. This adjustment is part of the SSA’s annual COLA to keep up with inflation and ensure that retirees and other recipients can maintain their standard of living.
In 2023 the COLA reached 8.7%, while 2024 saw a smaller adjustment of 3.2%. The 2025 increase, though modest will affect more than 68 million beneficiaries across the United States.
In Mississippi alone, more than 469,500 retirees will receive benefits, as well as nearly 106,000 Supplemental Security Income (SSI) recipients. Disability compensation, spousal benefits, and payments to widows and children will also increase.
For a detailed look at how COLA adjustments have varied over the years, check out our article Social Security $5,108 Monthly Checks in 2025.
Retirement age and benefits
If you are planning to retire soon it is important to understand how your retirement age affects your benefits. Social Security retirement benefits can begin as early as age 62 but opting for early benefits reduces your monthly payment.
The full retirement age depends on your birth year:
- Born 1943-1954: Full benefits at age 66
- Born 1955: Full benefits at 66 years and 2 months
- Born 1956: Full benefits at 66 years and 4 months
- Born 1957: Full benefits at 66 years and 6 months
- Born 1958: Full benefits at 66 years and 8 months
- Born 1959: Full benefits at 66 years and 10 months
- Born 1960 or later: Full benefits at age 67
Delaying benefits until age 70 can increase your monthly payment significantly.
How COLA is determined
The annual COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This ensures that benefits keep pace with inflation. Since 1975, adjustments have been automatic, removing the need for congressional approval.
Here’s a table of COLA increases over the past decade:
| Year | COLA Increase |
| 2015 | 1.7% |
| 2016 | 0% |
| 2017 | 0.3% |
| 2018 | 2.0% |
| 2019 | 2.8% |
| 2020 | 1.6% |
| 2021 | 1.3% |
| 2022 | 5.9% |
| 2023 | 8.7% |
| 2024 | 3.2% |
Taxes on Social Security benefits
Social Security benefits are subject to taxes if your income exceeds a certain threshold. In 2025, beneficiaries earning over $62,160 may need to pay taxes on their benefits. For every $3 earned above this limit, $1 will be deducted from your benefits until the month you reach FRA. However, once you’ve reached full retirement age, there’s no limit on earnings.
Employers and employees each pay a 6.2% Social Security tax, while self-employed individuals contribute 12.4%. The maximum taxable income for 2025 is expected to range between $168,600 and $176,100.
For more insights into earning limits and benefits, read our article, Which SSI Beneficiaries Can Get $1,500 Per Month in 2025?
Can you get extra income?
Yes, you can earn additional income while receiving Social Security benefits. However, earnings above the $62,160 limit may reduce your benefits temporarily if you haven’t reached FRA. Once you reach full retirement age you can earn as much as you like without affecting your Social Security payments.
FAQs
1. What is the COLA for 2025?
The COLA for 2025 is 2.5%, resulting in an average monthly increase of $50 for beneficiaries.
2. Can I start receiving Social Security benefits before my full retirement age?
Yes, you can start receiving benefits as early as age 62, but your monthly payments will be reduced.
3. Is there a limit on how much I can earn while receiving Social Security benefits?
If you haven’t reached your full retirement age, earnings above $62,160 may temporarily reduce your benefits. There is no earnings limit after reaching FRA.
The final words
The 2025 Social Security COLA increase is a welcome change for thousands of Mississippians. This adjustment helps beneficiaries stay ahead of rising costs and manage their daily expenses better. If you’re planning your retirement or curious about how these changes might impact you, make sure to stay informed and explore your options to maximize your benefits.