The Social Security Administration announced a 3.2% Cost-of-Living Adjustment (COLA) for 2025, offering modest relief as prices continue to rise. Although smaller than the “record increase of 2023,” the goal is to help payments keep up with inflation. More than 70 million people—including retirees, disabled individuals, survivors, and SSI recipients—will receive the increase automatically in January 2025.

For retirees, the COLA equals about $50 more per month, raising the average benefit to around $1,790. Updated estimates say the “average old-age benefit will rise from $1,871.09 to about $1,920,” and maximum benefits at ages 62, 67, and 70 will increase slightly.

People receiving disability benefits will also get more. The article notes that “the average disability benefit will increase from $1,401.30 to an estimated $1,438,” while the maximum benefit goes up from $3,822 to $3,923. Survivor benefits follow the same pattern, with the average rising from $1,509.50 to about $1,549.

SSI beneficiaries will see higher payments too. The “federal maximum for individuals and couples will rise to $968 and $1,452,” and essential persons will receive about $497. The average SSI payment will reach roughly $714.

The COLA is crucial for people on fixed incomes who depend on Social Security for basics like food, medication, housing, and utilities, but many advocates warn that healthcare and housing costs still rise faster than COLA increases.

Recipients will receive their updated SSA notice in December. Staying informed through reliable sources such as SSA.gov, AARP, and Medicare.gov can help individuals understand their benefits and plan for 2025.