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Social Security’s 2025 COLA: Retirees at This Age Will Get the Biggest Raises Next Year

The Labor Department will release September inflation data on Oct. 10, and shortly thereafter the Social Security Administration will announce the official cost-of-living adjustment (COLA) for 2025. COLAs protect the buying power of Social Security by ensuring benefits increase at the same rate as inflation.

Retirees are eager to know how much additional Social Security income they will get next year because rising prices have become increasingly burdensome. According to Gallup, 63% of U.S. adults surveyed in 2024 said inflation has caused some degree of financial hardship, up from 45% in 2021.

The Senior Citizens League (TSCL), a nonprofit advocacy group, estimates benefits will get a 2.5% COLA next year. That would be the smallest raise for Social Security beneficiaries in four years. However, while all payouts will increase by the same percent, retirees of a certain age will get the largest COLAs in nominal dollars.

Read on to learn more.A Social Security card intermixed with U.S. currency.

 

Retirees at age 70 will get the largest nominal-dollar COLAs in 2025

The average Social Security benefit for retired workers was $1,920 in September 2024. That figure will increase $48 next year in the event of a 2.5% cost-of-living adjustment (COLA).

However, retirees with above-average benefits will receive bigger nominal-dollar COLAs, meaning their payouts will increase more than $48. Likewise, retirees with below-average benefits will receive smaller nominal-dollar COLAs, meaning their payouts will increase less than $48.

The chart below shows the average Social Security benefit for retired workers at ages 62 through 80. The information comes from a biennial report last updated on June 30, 2024. Payment amounts have been rounded to the nearest dollar.

Age

Average Retired-Worker Benefit

62

$1,311

63

$1,344

64

$1,436

65

$1,583

66

$1,774

67

$1,894

68

$1,947

69

$1,971

70

$2,068

71

$2,057

72

$2,044

73

$2,011

74

$2,002

75

$2,013

76

$1,998

77

$2,004

78

$1,972

79

$1,954

80

$1,946

Data source: Social Security Administration.

Based on the chart above, retired workers aged 70 as June 30, 2024, will receive the biggest nominal-dollar COLAs next year. That’s true because they already receive the largest Social Security benefits.

Consider it like this: If the average retired worker benefit at age 70 is $2,068 per month, and Social Security’s 2025 COLA is 2.5%, then the average 70 year old will receive an additional $51.70 per month next year. No other age group has a large baseline benefit, so no other group will receive a larger COLA.

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