Social Security beneficiaries will see a bump in their monthly checks in 2025 to account for inflation and the growing cost-of-living.
However, next year’s cost-of-living adjustment (COLA) will be the smallest it’s been in three years.
Both Social Security and Supplemental Security Income (SSI) checks will increase in 2025. In Wisconsin, more than 1.2 million people receive monthly Social Security retirement checks, while more than 100,000 people are on the SSI program, which supports those with limited income and resources.
Here’s what to know about the Social Security changes in the new year.
What is the 2025 Social Security cost-of-living adjustment?
Social Security and SSI benefits will both increase by 2.5% in 2025 to account for cost-of-living increases across the country, the Social Security Administration announced in October.
That’s down from the 3.2% increase granted in 2024, marking the smallest cost-of-living adjustment since 2021, according to USA TODAY. For the average beneficiary, their monthly payment will rise by $50 next year, going from to $1,907 in January 2024 to $1,957.
Will the maximum possible Social Security benefit increase in 2025?
The maximum possible Social Security benefits will also increase in 2025, after inflation-related changes to way benefits are calculated, according to USA TODAY.
In 2024, the maximum amount a person retiring at full retirement age could receive was $3,822 monthly. This number will increase to $4,018, or more than $48,000 annually, in 2025.
When do Social Security and SSI checks go out in 2025?
Social Security checks are distributed on a Wednesday each month depending on the recipient’s birth day, while SSI checks are released on the same day for all beneficiaries. Due to a schedule quirk, January 2025 SSI checks will go out on Dec. 31, 2024 this year.
