Social Security Benefits to Increase 2.5% in 2025: What You Need to Know

Social Security benefits are projected to rise 2.5% in 2025 money watch Social Security benefits are projected to rise 2.5% in 2025 money watch by Kate Gibson edited by and Marie Lee updated on September 11th 20241 151 p.m. eastern Daylight time/ CBS News the nation's more than 70 million Social Security recipients may want to temper their expectations of how much more they'll be getting in 2025 retirees are looking at an average monthly bump of $48 or an increase of 2.5% according to projections released on Wednesday the 2025 cost of living adjustment or Cola which is based on the rate of inflation is now forecast to come in below last month's 2.57% calculation the senior citizens League tscl an advocacy group for older Americans said the updated forecast came hours after the government reported that Prices rose 2.5% in the 12 months ending in August as inflation continues to moderate the projected increase is not yet official as the Social Security Administration typically determines the following Year's Cola in mid- October a 2.5% rise would translate into an average monthly benefit of $1,968 and show up in most recipients January benefit check though a 2.5% hike would be less of an increase than the 3.2% received in 2024 it falls roughly within the bounds of the historical Norm which has averaged at about 2.6% over the past two decades the cola ran is low as 0% in 2010 2011 and 2016 and as high as 88.7% in 2023 the Social Security Administration sets its yearly Cola based on inflation during the quarter or from July through September the agency takes the average inflation rate over that period from what's known as the Consumer Price Index for urban wage earners and clerical workers or CPI which tracks spending by working Americans if that inflation rate is higher than the same period a year earlier the cola is adjusted upward by the difference