More than 72.5 million Americans have seen an increase in their Social Security and Supplemental Security Income (SSI) benefits in 2025. This 2.5% cost-of-living adjustment (COLA) aims to help beneficiaries keep up with inflation and the rising cost of living.
When Did the Increase Take Effect?
The Social Security Administration (SSA) implemented the 2.5% COLA at different times for various groups:
- Social Security Beneficiaries: The increase began in January 2025, benefiting nearly 68 million people.
- SSI Beneficiaries: The adjustment started earlier, with payments reflecting the increase as of December 31, 2024.
March 2025 Social Security Payments
The SSA is set to release its final March 2025 payments on March 26, providing eligible recipients with up to $5,108. This applies to individuals receiving:
- Regular retirement benefits
- Disability (SSDI) benefits
- Survivor benefits
How Much Have Benefits Increased?
With the 2.5% COLA, both average and maximum Social Security payments have risen:
Average Monthly Benefits After COLA:
- Retirement benefits: Increased from $1,976 to approximately $2,025.
- SSDI payments: Grew from $1,620 to around $1,660.
Maximum Monthly Benefits After COLA:
- Retired at 70: Up to $5,108.
- Retired at 67: Up to $4,018.
- Retired at 62: Up to $2,831.
Social Security Fairness Act Retroactive Payments
Some beneficiaries are also eligible for retroactive payments due to the Social Security Fairness Act, which addresses withheld benefits.
Key Details on Back Payments:
- Average lump sum: $6,710, covering withheld benefits since December 2023.
- Expected deposit date: March 26, 2025, or separately by the end of the month.
- April payments onward: Monthly benefits will reflect increased amounts under the new COLA.
Who Will Receive Retroactive Payments?
- Retirees affected by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) repeal may receive a lump sum.
- The exact payment date is uncertain, but those eligible could see funds deposited in late March.
Final Thoughts
The 2.5% COLA in 2025 ensures that Social Security and SSI beneficiaries receive slightly higher payments to combat inflation. However, the exact benefits depend on work history, retirement age, and eligibility for retroactive adjustments. To check individual benefits and eligibility, visit the SSA’s official website.
