The Social Security Administration announced that it will increase benefits by 2.5% for recipients in 2025. The SSA's announcement came as the Bureau of Labor Statistics released the updated consumer price index, indicating the price of goods and services increased 2.4% in the 12-month period ending in September.
About 71 million Social Security beneficiaries will get the 2.5% cost-of-living adjustment starting in January. Nearly 7.5 million people receiving SSI will get the adjustment starting on Dec. 31.
Recipients will average about $50 more in benefits per month.
“Social Security benefits and SSI payments will increase in 2025, helping tens of millions of people keep up with expenses even as inflation has started to cool,” said Martin O’Malley, commissioner of Social Security.
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But some experts have said Social Security has failed to keep up with actual costs incurred by recipients.
The Senior Citizens League said that Social Security recipients have lost 20% of their buying power since 2010.
The organization said that between 2010 and 2024, Social Security recipients have received 58% more in benefits, but the cost of goods and services seniors use has gone up 73%. During that time, the average cost of living adjustment has been 3.9%.
"Seniors—and TSCL—demand that Congress takes immediate action to strengthen COLAs to ensure Americans can retire with dignity, such as instituting a minimum COLA of 3 percent and changing the COLA calculation," said The Senior Citizens League Executive Director Shannon Benton.
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The Social Security Administration says it bases its cost-of-living adjustment on the consumer price index for urban wage earners and clerical workers. The Bureau of Labor Statistics releases consumer price index data monthly.
The consumer price index weighs the costs of goods based on their importance. Items like food, shelter and energy tend to be weighted more heavily.
