Donna LeValley
The Social Security cost-of-living adjustment (COLA) for 2025 is 2.5%, meaning recipients will see their monthly payments rise by that amount for the new year. But when, exactly, does that increase kick in? And what is the payment schedule for the rest of 2025? Here's everything you need to keep track of payments all year round.
The Social Security Administration announced the COLA back in October. It takes inflation into account, calculating the percent change between average prices in the current year's third quarter and the previous year's third quarter.
Because the country saw slower inflation this year, Social Security recipients will get the smallest COLA increase since 2020. Many seniors feel the payments aren't enough to keep up with inflation. The Senior Citizens League's latest Loss of Buying Report found that retirees have seen a 20 percent reduction in purchasing power since 2010. And "found that, on average, payments for retired workers would need to rise by $4,440 per year or $370 per month, to rebuild their lost value."
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When Social Security recipients will start getting 2025 payments
Social Security recipients will start getting checks with the 2025 COLA increase in January. When you get your monthly Social Security check depends on your birthday. Generally, if the date of your birth is the first through 10th day of its respective month, you'll get paid on the second Wednesday of the month. If your birthday is the 11th through 20th day of the month, you'll get paid on the third Wednesday. If your birthday is after the 20th day of the month, you'll get paid on the fourth Wednesday.
On average, Social Security retirement monthly benefits will grow by about $50, according to the administration. That 2.5% COLA is slightly below the 2.6% average over the past 20 years. The Senior Citizens League said in an October statement "Changing the COLA calculation to the CPI-E from the CPI-W should only be the starting point for reforming Social Security Benefits." They also called for a minimum COLA of 3%.
Supplemental Security Income (SSI) recipients will get their first payment with the 2025 COLA at the end of December, as January 1 — the usual payment day — is a holiday.
Concerns about Social Security's future
A majority of Americans are concerned about the future of Social Security. Although these benefits are meant to supplement retirement income, 53% of people anticipate relying on Social Security benefits to pay their everyday expenses in retirement.
Only 14% of non-retired Americans say they won’t rely at all on Social Security benefits to pay necessary expenses when they retire. Lastly, 73% fear benefits won't be there for them as the Social Security trust fund is expected to be insolvent by 2033. At that point, recipients would receive approximately 79% of the benefits they are entitled to.
While the COLA is set based straightforwardly on inflation numbers, there are questions about what could happen to Social Security going forward with the incoming administration of Donald Trump. The Social Security trust is expected to run out of money in 2033, according to the latest estimates by the non-partisan Committee for a Responsible Federal Budget (CRFB), and some of Trump's stances on Social Security are not expected to help bridge the gap.
For example, Trump's proposal to end taxes on Social Security benefits could drive the program into insolvency more quickly, as the Kiplinger tax team has explained. That is one of several ways Trump could change your retirement.
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