Social Security recipients will receive a 2.5% cost of living adjustment in 2025, the Social Security Administration announced Thursday. It’s the smallest increase in four years, reflecting the decline in inflation.
The average Social Security payment will rise from $1,907 per month to $1,955, an increase of about $48. The maximum benefit of $4,873 per month will increase by about $122.
The Social Security Administration will send letters in December to beneficiaries explaining their individual increases. More than 72 million people currently receive Social Security benefits and Supplemental Security Income payments.
The maximum wage subject to Social Security taxes will rise, as well. Starting in 2025, the taxable maximum will increase from $168,600 to $176,100.
