The Social Security Administration (SSA) implements an annual Cost of Living Adjustment (COLA) to ensure that Social Security and Supplemental Security Income (SSI) benefits keep pace with inflation. The COLA for 2025 is expected to provide a modest increase in benefits, reflecting changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Eligibility for the 2025 COLA increase
General eligibility
To qualify for the Social Security COLA, an individual must already be receiving Social Security or SSI benefits. The adjustment is automatically applied, so beneficiaries do not need to take any additional action to receive their increased payments.
Spousal benefits
Spouses who qualify for Social Security benefits based on their partner’s earnings will also receive a COLA boost.
On average, spousal benefits are lower than retirement benefits, which means the dollar amount increase will be smaller.
For example, with a projected 2.63% COLA, the average retired worker receiving $1,918 per month as of June 2024 would see an increase of about $50 per month.
Meanwhile, those receiving spousal benefits, averaging $911 per month, can expect an increase of approximately $24 per month.
Couples where one partner receives retirement benefits and the other receives spousal benefits will see a combined monthly increase of around $74.
The Social Security spousal benefits include both current spouses and certain divorced spouses, provided they meet the SSA’s criteria. Spousal benefits are typically 50% of the primary beneficiary’s full retirement amount, and the COLA increase is applied to this amount.
Who qualifies for spousal benefits?
Current Spouses: To qualify, a current spouse must be married to a worker who is entitled to Social Security retirement or disability benefits. The spouse must be at least 62 years old, or any age if they are caring for a child under 16 or a disabled child receiving benefits on the worker’s record.
Divorced spouses: Divorced spouses may also qualify if they were married to the worker for at least 10 years, are currently unmarried, and are at least 62 years old. The benefits for a divorced spouse do not affect the benefits of the worker’s current spouse.
Widowed spouses: Widows and widowers can receive survivor benefits, which are generally equal to the deceased spouse’s full benefit amount. They can start these benefits as early as age 60 (or 50 if disabled) and will also receive the COLA increase.
Facts about the 2025 COLA
Increase amount: The exact percentage of the 2025 COLA increase will be determined in October based on inflation data. Historically, COLA increases have ranged from 1% to over 5%, depending on economic conditions.
Payment schedule: The COLA increase will be reflected in January 2025 payments. Beneficiaries will be notified of their new benefit amount in December 2024 through the SSA’s online portal and mailed notices.
