In 2025, Social Security payments increased by 2.5% thanks to the Cost‑of‑Living Adjustment (COLA). This change helps retirees, people with disabilities, family members, and low‑income individuals keep their buying power as prices go up. The boost is smaller than the big increases in 2023 (8.7%) and 2024 (3.2%), but it still helps match rising costs.
What Is COLA and Why Does It Matter?
COLA stands for Cost‑of‑Living Adjustment. It’s a change in Social Security payments to keep up with inflation. Every year, the Bureau of Labor Statistics (BLS) measures the change in prices for retired workers using an index called CPI‑W.
The Social Security Administration uses that data to set the new payment amounts. In 2025, COLA was 2.5%, meaning payments increased by that percentage to help offset inflation.
Concerns Over CPI‑W Accuracy
Some experts worry the CPI‑W data might not be fully accurate this year. The Senior Citizens League (TSCL) says the BLS had geography and staff cuts, making it harder to collect complete price data.
If that’s true, the real cost of living might be rising faster than what COLA reflects. This means Social Security payments might not fully match how costly life actually is.
What’s Next for the 2026 COLA?
Everyone is watching what next year’s COLA will be. Most estimates – from Barron’s, MarketWatch, and BenefitsPro – still point to about 2.5%. A few sources offer slightly different rates: Investopedia suggests 2.1%, AS.com says 2.4%.
Mary Johnson, an analyst at TSCL, remains confident in the 2.5% estimate. The official COLA for 2026 will be announced in October 2025 and is based on CPI‑W data through September. It might change a bit if there are new tariffs or other big economic events.
Social Security Payments in June 2025
Here’s how payment dates were scheduled in June 2025:
- SSI payments went out May 31 (since June 1 was a Saturday).
- Pre‑May 1997 retirees, overseas recipients, and those getting retirement plus SSI got payments on June 3.
- People who started Social Security after May 1997 get paid by birthday:
- If your birthday falls 1–10, you were paid the second Wednesday (June 11).
- For birthdays 11–20, payment was the third Wednesday (June 18).
- For birthdays 21–31, payment is on the fourth Wednesday (June 25).
How Much Can You Get? Maximum vs. Average Benefits
The highest monthly Social Security amounts in 2025 are:
- Age 62 (early retirement): up to $2,831.
- Full retirement age (FRA, age 66 or 67): up to $4,018.
- Delayed retirement (late retirement credits, 35+ years of work credits): up to $5,108.
But most people don’t get the maximum. The average at age 67 is about $2,000 per month—close to what over 95% of retired Americans actually receive.
Why It All Matters
For people relying on Social Security, even small changes in COLA can make a big difference. Missing accurate inflation measurement means payments could lag behind real living costs.
That makes it harder for retirees and others on fixed incomes to keep up. Watching the 2026 COLA in October is important—it shows whether payments will continue to match price changes or fall behind.