2025 Cost of Living Adjustment (COLA)
January 16, 2025
For the last few years, a constant talking point in news touching any part of the financial or retirement world has been inflation. It affects how much you spend on daily life. It affects the growth of investments.
And – when considering retirement – it affects the Social Security check you receive each month.
In 2025, the Social Security cost-of-living adjustment (COLA) has been set at 2.5%1. That figure is standard for all benefit recipients. It will average out to an increase of about $50 per month from benefits received in 2024. If you are still in the workforce and building up for retirement, you should note that the maximum amount of earnings subject to taxes towards Social Security has risen to $176,100 from the 2024 ceiling of $168,600.
Social Security can have the reputation of a general, ambiguous check for those receiving it. But the reality is that there are hundreds of different ways2 to file for benefits. Depending on your age, income, and many other factors, there is a lot to consider if you are looking for the optimal choice.
With so many options and possibilities, it can be difficult to compare one plan to any other. And that is where we can offer you help and guidance from our experienced professionals. Contact us and we can help show you how potential Social Security benefits can be best aligned with your personal goals.