Social Security cost of living adjustment for 2025 The Social Security annual cost-of-living adjustment (COLA) for 2025 is 2.5%, the Social Security Administration (SSA) announced. This is the smallest increase since 2020, as expected, and follows an increase of 3.2% in 2024.
The COLA was 2.5 percent in 2025. Nearly 71 million Social Security beneficiaries will see a 2.8 percent COLA beginning in January 2026. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2025. (Note: Some people receive both Social Security benefits and SSI).
The combined cost of the Social Security and Medicare programs is projected to rise from 9.2 percent of GDP in 2025 to 12.1 percent of GDP in 2049 and to 13.2 percent by 2080, with most of the increase attributable to Medicare. By 2099 the combined cost will have declined slightly to 12.8 percent of GDP.
NOTE: The 7.65 percent tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20 percent on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45 percent on all earnings.
The 2026 Part B premium for most enrollees is $202.90/month, up from $185/month in 2025. For most Medicare Part B enrollees, the premiums are automatically deducted from Social Security checks. The 2.8% cost-of-living adjustment (COLA) for 2026 will add about $56/month to the average retiree's check.
The standard monthly premium for Medicare Part B enrollees will be $185.00 for 2025, an increase of $10.30 from $174.70 in 2024. The annual deductible for all Medicare Part B beneficiaries will be $257 in 2025, an increase of $17 from the annual deductible of $240 in 2024.
The dollar amount increase to checks will vary depending on a person's benefit amount, but the average Social Security Retirement benefit, $2,008.31 in July 2025, will grow by about $56.
Benefits would be reduced but not eliminated entirely. According to a recent study by the Social Security Trustees, by 2035, even if the fund were depleted, Social Security would still be able to pay 83 percent of scheduled benefits from the incoming payroll tax portion of the fund.
Six Changes to Social Security in 2026
In 2025, Social Security saw a 2.5% Cost-of-Living Adjustment (COLA), increasing average benefits, alongside ongoing discussions about long-term solvency, with the trust fund still projected to deplete by 2033, potentially leading to benefit cuts, while new legislation, the Social Security Fairness Act, began adjusting payments for some affected by WEP/GPO. Key changes for 2025 included higher SSI rates, increased taxable maximums for Social Security, and continued pushes for better online services and electronic payments from the SSA.
The 2.8 percent cost-of-living adjustment (COLA) will begin with benefits payable to nearly 71 million Social Security beneficiaries in January 2026. Increased payments to nearly 7.5 million SSI recipients will begin on December 31, 2025. (Note: Some people receive both Social Security and SSI benefits.)
Qualifying for the third stimulus check
If you receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) benefits, you will automatically qualify for the third stimulus check which will be in the amount $1400.
Qualification for the $1,400 stimulus check (the third Economic Impact Payment) in 2021 depended on your 2021 Adjusted Gross Income (AGI) and filing status, with full amounts for single filers earning up to $75,000 (phasing out at $80,000) and joint filers up to $150,000 (phasing out at $160,000), plus $1,400 per dependent; you needed a valid Social Security Number and had to claim it as the Recovery Rebate Credit on your 2021 tax return if you missed the payment, with deadlines typically in April 2025.
The extra $144 added to Social Security usually comes from the Medicare Part B Giveback benefit, offered by some Medicare Advantage (Part C) plans, which pays back some or all your Part B premium, showing up as extra money in your check if it's deducted from your Social Security. To qualify, you need Original Medicare (Parts A & B), pay your own Part B premium, live in a plan's service area, and enroll in a specific Medicare Advantage plan that offers this "rebate," with the amount varying by plan and location.
Yes, Supplemental Security Income (SSI) recipients received two payments in May 2025: one on May 1st (for May) and another on May 30th (for June) because the June 1st payment date fell on a Sunday, triggering an early release. Regular Social Security beneficiaries, however, received their payments on the usual Wednesday schedule based on their birthdates (May 14, 21, or 28), though some individuals receiving both SSI and Social Security could see three payments in May.
Yes, retiring with $500k plus Social Security is possible, but it depends heavily on your lifestyle, location, spending, and when you start taking benefits, potentially supporting a modest middle-class retirement with careful budgeting and a diversified investment strategy. The key is to supplement Social Security with portfolio withdrawals, often using the 4% rule (around $1,667/month from $500k), while managing taxes, inflation, healthcare costs, and deciding if a paid-off home or living abroad (geo-arbitrage) fits your plan.