What the 2025 Increase Means (and How to Get Ready for 2026)

TL;DR: Social Security and SSI benefits rose 2.5% for 2025. Most Social Security recipients see the larger payment with the January 2025 check (which reflects December 2024 benefits). SSI recipients got the higher amount December 31, 2024. Expect the 2026 COLA to be announced the morning of October 15, 2025 (after the September CPI report). Below is a plain-English guide to what changed, how COLA is calculated, how Medicare premiums interact with your raise, what to do now, and how to prepare for tax time. Bureau of Labor Statistics+3Social Security+3Social Security+3

The 2025 COLA at a glance

Increase: +2.5%. On average, retirement benefits rose about $50/month starting with the January 2025 payment. Social Security
SSI timing: The higher SSI amount applied to January 2025, paid December 31, 2024 (because Jan. 1 is a holiday). Social Security
Payment schedule: Social Security pays on Wednesdays by birth-date groups; SSI pays on the 1st (or the prior business day if there’s a holiday). Download SSA’s 2025 payment calendar if you like to plan ahead. Social Security
Medicare Part B in 2025: Standard premium $185.00/month (deducted from your Social Security check if you’re enrolled). Centers for Medicare & Medicaid Services+1
Other 2025 adjustments:
- Taxable wage base: up to $176,100 of wages subject to OASDI. Social Security
- Earnings test (if you work before FRA): $23,400 annual limit; in the year you reach FRA: $62,160. Social Security

How COLA is calculated (and why it lands in October)

COLA is tied by law to inflation measured by the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers). SSA averages CPI-W for July, August, and September and compares it with the same quarter a year earlier. If the average is higher, you get a COLA; if not, there’s no increase. The official announcement typically follows the September CPI release from the Bureau of Labor Statistics in mid-October. Social Security+1

For 2026, BLS is scheduled to release the September inflation report on Wednesday, October 15, 2025 at 8:30 a.m. ET—that’s when to expect SSA’s next COLA announcement. Bureau of Labor Statistics+1

When and where you’ll see your COLA notice

SSA posts your personalized COLA notice in the Message Center of your my Social Security account in December (paper letters are mailed throughout December, too). If you haven’t already, create or sign in to your account so you can see the exact dollar changes to your benefit and any deductions. Social Security+2SSA+2

Medicare premiums and the “hold harmless” rule

If you’re enrolled in Medicare Part B, your premium is typically deducted from your Social Security payment. Most people pay the standard $185 in 2025. A special “hold harmless” provision prevents your net Social Security check from going down if a Part B premium hike would otherwise eat the whole COLA—though it doesn’t apply to everyone (e.g., new enrollees, those not yet drawing Social Security, or higher-income beneficiaries subject to IRMAA). Centers for Medicare & Medicaid Services+2Medicare+2

Taxes: will the COLA change what you owe?

Your Social Security may be taxable depending on combined (provisional) income thresholds set in law: $25,000 for single filers and $32,000 for married filing jointly. Up to 85% of benefits can be taxable above the top thresholds. If the COLA nudged you higher, consider withholding or estimated payments. Congress.gov+1

Easy ways to handle withholding:

Start, change, or stop withholding online in your my Social Security account (Voluntary Tax Withholding). Social Security
Or file IRS Form W-4V (choose 7%, 10%, 12%, or 22%). IRS+1

What to do now (quick checklist)

Verify your new amount. Log in to my Social Security (Message Center) to see your updated gross benefit, deductions (Medicare, withholding), and net deposit. Social Security
Update your budget. Add the COLA to your monthly plan; remember the standard Part B premium if it’s deducted from your check. Centers for Medicare & Medicaid Services
Right-size your tax plan. Use Form W-4V or my Social Security to set or adjust withholding if the increase could affect your tax liability. IRS+1
Review Medicare coverage. Open Enrollment runs Oct 15–Dec 7 each year—compare plans, drugs, and doctors so 2026 coverage and costs fit your needs. Medicare
Watch for scams. You never need to pay or “apply” to get your COLA. Check only at SSA.gov or your my Social Security account for official notices. (SSA issues the COLA automatically.) Social Security

FAQs

When did the 2025 raise hit my bank account?
Social Security retirement/disability/survivor benefits reflect the COLA beginning with December 2024 benefits, paid in January 2025 (on your usual Wednesday). SSI beneficiaries received the higher amount December 31, 2024 for January. Social Security+1

How big was the 2025 increase, really?
2.5%, or roughly $50 more per month for the average retiree, per SSA’s announcement. Your dollar amount varies with your own benefit. Social Security

Did anything else change for 2025?
Yes—SSA updates items tied to wages each January. Highlights:

Taxable wage cap rose to $176,100. Social Security
Earnings test limits increased to $23,400 (under FRA) and $62,160 (in the year you reach FRA). Social Security

When will we know the 2026 COLA?
After BLS releases September CPI data on Oct 15, 2025 (8:30 a.m. ET), SSA typically announces the new COLA the same morning. Many independent trackers currently estimate around the high-2% range, but the official number arrives then. Bureau of Labor Statistics+2Investopedia+2

A quick refresher on the COLA formula (for the curious)

What it uses: CPI-W (a BLS inflation index).
How it’s computed: Average July–August–September CPI-W versus the same months a year earlier.
When it applies: To December benefits (paid in January), with SSI reflecting the change for January (often paid late December).
If inflation falls: No increase is applied. Social Security+1

Bottom line

The 2025 COLA helped nudge benefits up 2.5%; for many retirees, Part B premiums and taxes determine how much of that you actually see in your net deposit. Centers for Medicare & Medicaid Services
Make sure your my Social Security is set up, double-check your withholding, and use Medicare Open Enrollment (Oct 15–Dec 7) to keep healthcare costs in check for next year. Social Security+1
Mark your calendar: the 2026 COLA should be announced Oct 15, 2025—we’ll update when the official number drops. Bureau of Labor Statistics

Sources: Social Security Administration press release & fact sheets; SSA pages on COLA, CPI-W, payment schedules, and my Social Security; CMS/Medicare costs and enrollment dates; IRS Pub. 915 and W-4V guidance; BLS release calendar. Bureau of Labor Statistics+8Social Security+8Social Security+8