In 2025, the Social Security Administration (SSA) has confirmed a Cost-of-Living Adjustment (COLA) of 2.5%, resulting in an average monthly increase of $59 for roughly 72.5 million Americans.
This latest COLA aims to help retirees, disabled individuals, and SSI recipients keep pace with rising prices for essentials.
What the $59 COLA Increase Means for You
Your monthly benefit has risen by about 2.5% compared to 2024. Here’s an estimated breakdown:
| Benefit Type | 2024 Avg. Benefit | 2025 After COLA | Increase |
|---|---|---|---|
| Retired Workers | $1,927 | $1,976 | +$49 |
| Disabled Workers | $1,542 | $1,580 | +$38 |
| Survivor Benefits | $1,478 | $1,537 | +$59 |
| SSI Individuals | $943 | $967 | +$24 |
Please note: the actual dollar increase varies by benefit level, but the $59 increase often refers to average retired worker benefits from 2024 to 2025.
Why This COLA Matters
The COLA is tied to the Consumer Price Index for Urban Wage Earners (CPI-W). While inflation has cooled, price pressures on essentials like food, housing, and healthcare persist .
Although necessary, some seniors argue that COLA still doesn’t reflect real-life costs—particularly medical and prescription expenses .
Still, this standardized adjustment helps preserve the purchasing power of Social Security amid economic uncertainty.
When You’ll See the New Payments
The COLA took effect in January 2025 for most beneficiaries, with SSI recipients receiving their boost on December 31, 2024 .
In July 2025, payments continue on schedule, determined by birth date:
- 1st–10th: July 10
- 11th–20th: July 17
- 21st–31st: July 24
- SSI: Always on the 1st (or previous business day if a holiday)
What’s Behind the COLA Calculation
- Based on the CPI-W change from Q3 2023 to Q3 2024
- Adjusted annually to align Social Security benefits with general inflation
- SSI COLA and Medicare premium increases also factor into total payout adjustments
While a $59 monthly increase may not fully offset rising costs, it’s a meaningful buffer for millions of retirees and disabled individuals.
The 2.5% COLA ensures benefits better match inflation, supporting vulnerable populations. To protect your financial stability, review your new benefit amount, stay informed, and budget accordingly.
FAQs
Why did my check go up by $59?
Because of the 2.5% COLA applied in January 2025, which increased average benefits by about $59 monthly.
When will payments reflecting the COLA arrive?
Most benefits were adjusted in January 2025, and SSI payments increased on December 31, 2024 . July 2025 payments follow your usual schedule based on birth date.
Does every Social Security recipient get $59 more?
No. $59 reflects the average increase. Actual amounts vary depending on your benefit type and amount.