Here's How Much Social Security Checks Are Going Up Next Year

The Social Security Administration said recipients will get a 2.5% cost-of-living increase in 2025, the smallest hike since 2021, as inflation begins to cool.

The average Social Security benefit check will rise about $50 a month beginning in January, the federal agency announced on Thursday.

The Social Security Administration calculates the cost-of-living adjustment (COLA) to the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the third quarter as determined by the Department of Labor's Bureau of Labor Statistics.

The 12-month CPI, which measures the change in prices paid by Americans for goods and services, increased 2.4% in September over last year, slightly lower than 2.5% in August. It rose 2.9% in July, the Bureau of Labor Statistics said Thursday.

"Social Security benefits and SSI payments will increase in 2025, helping tens of millions of people keep up with expenses even as inflation has started to cool," Martin O'Malley, the Social Security Administration commissioner, said in a statement.

Even as inflation has fallen from its pandemic highs, prices remain inflated, which is especially troublesome for the elderly.

AARP CEO Jo Ann Jenkins said the COLA will mean an additional $561 a year for the approximately 68 million who received Social Security benefits but many will still find it difficult to keep up with rising prices.

"This adjustment means older Americans will receive needed relief to help better afford essential items from groceries to gas. Inflation took a financial toll this past year, particularly on retirees, who often rely on Social Security as a key source of income," Jenkins said.

"Even with this adjustment, we know many older Americans who rely on Social Security may find it hard to pay their bills. Social Security is the primary source of income for 40% of older Americans," she continued.