Social Security benefits to increase by 2.5% next year

Millions of Social Security recipients will get a 2.5% cost-of-living increase to their monthly checks beginning in January, the Social Security Administration announced Thursday.

The cost-of-living adjustment, or COLA, for retirees translates to an average increase of more than $50 for retirees every month, agency officials said.

About 72.5 million people, including retirees, disabled people and children, get Social Security benefit.

But even before the announcement, retirees voiced concern that the increase would not be enough to counter rising costs.

Recipients received a 3.2% increase in their benefits in 2024, after a historically large 8.7% benefit increase in 2023, brought on by record 40-year-high inflation.

The agency will begin notifying recipients about their new benefit amount by mail starting in early December.