The annual Social Security cost-of-living adjustment (COLA) is crucial for millions of Americans. It is meant to help offset the rising costs of inflation and provide some stability for retirees on a fixed income. For 2025, COLA is set at 2.5%, one of the smallest increases in recent years. Wondering how much this adjustment will add to your monthly check? The Social Security Administration (SSA) has a way for you to find out early – if you do one simple thing by November 20.
How to check your COLA increase early
By November 20, create a my Social Security account if you do not already have one. This free online account allows you to manage your benefits and view essential updates, including your personalized COLA adjustment. Once you have your account set up, you can access your updated 2025 benefit amount by early December, weeks before paper notices are mailed out. Here is what the my Social Security account offers:
- Immediate access to your COLA notice
- Tools for estimating future benefits
- Options for tracking your earnings history and benefit adjustments
Setting up the account only takes a few minutes and allows you to see your personalized benefit amount early, helping you get a head start on budgeting for the new year.
What does the 2025 COLA increase mean for you?
The SSA announced a modest 2.5% COLA increase for 2025. For the average Social Security recipient, who currently receives about $1,921 per month, this means an additional $48 per month. Starting in January, that average monthly benefit will rise to approximately $1,969. Here is how this translates annually:
- Average monthly benefit: $1,969
- Annual benefit: $23,628, up from $23,052
This 2.5% increase may not seem like much, but every little bit helps, especially as everyday expenses continue to rise.
What can you do if you do not have an online account?
If you prefer not to set up a my Social Security account, you can still receive your COLA information via mail. The SSA will send out paper notices in December to all beneficiaries, detailing the updated benefit amount for 2025. However, setting up an online account offers several advantages, including faster access to your COLA notice and tools to help manage your benefits and keep your information up-to-date.
Why knowing your COLA amount early is helpful
Getting an early look at your new monthly amount is not just convenient, it can help with financial planning and budgeting for the year ahead. Here are a few reasons why this early notice could benefit you:
- Budgeting: You will have more time to adjust your budget based on your updated income.
- Planning: For those relying on Social Security for essentials, knowing the amount ahead of time can help with planning for household expenses, medical needs, or debt payments.
- Confidence: Having a clear picture of your income can bring peace of mind as you prepare for the year ahead.
How to prepare if you rely heavily on Social Security
Social Security benefits make up a significant portion of income for millions of retirees. Here are a few tips to make the most of your updated benefit amount in 2025:
- Track your spending: Know where your money is going each month and prioritize essential expenses.
- Plan for inflation: Be prepared for any additional increases in living expenses.
- Explore other resources: If you need help making ends meet, look into local programs or additional resources that may be available to retirees.
By setting up your Social Security account before November 20, you can gain early insight into your 2025 COLA and plan your finances for the coming year. Whether you rely heavily on Social Security or use it as supplemental income, this is a small step that can make a significant difference.
