The Social Security Administration announced that Social Security recipients will receive a 2.5% cost-of-living increase to their monthly checks beginning in January 2025.
This adjustment translates to an average increase of more than $50 for retirees every month, benefitting around 72.5 million people, including retirees, disabled individuals and children.
The big picture: In 2024, recipients received a 3.2% increase in their benefits, following a historically large 8.7% increase in 2023 due to record high inflation, indicating a smaller increase for 2025 as inflation moderates.
- The upcoming increase aims to provide relief for recipients as they face rising living costs, but concerns have been voiced by retirees about the adjustment not being sufficient to counter these expenses.
- The announcement comes amid concerns about a severe financial shortfall in the Social Security program, as highlighted in the annual Social Security and Medicare trustees report.
