Social Security and Supplemental Security Income (SSI) recipients will receive higher payments beginning in September 2025, reflecting the annual 2.5 percent cost-of-living adjustment (COLA).
This increase affects more than 72.5 million Americans, allowing beneficiaries to maintain purchasing power in the face of rising living costs. The adjustment applies to nearly 68 million Social Security recipients and approximately 7.5 million SSI recipients.
While the COLA percentage is consistent, the actual dollar increase varies according to each individual’s current benefit, including those who receive both Social Security and SSI.
In addition to the COLA, the Social Security Administration announced several related adjustments, effective in 2025:
For example, the maximum taxable earnings will be increased to $176,100, and workers under full retirement age can earn up to $23,400 before benefit reductions apply, with $1 deducted for every $2 earned above this limit.
Furthermore, those reaching full retirement age in 2025 have an earnings threshold of $62,160, with $1 deducted for every $3 earned above that until they reach eligibility, while there is no earnings limit for workers who have already reached full retirement age.
Beneficiaries will receive updated COLA information online in December 2024 via their my Social Security accounts.
The new one-page notice uses simple language and includes personalized payment amounts, deduction details, and effective dates, making it easier for recipients to understand the changes to their September 2025 checks.
The Social Security Administration emphasizes that its services are free of charge. Beneficiaries should remain vigilant against fraudulent schemes, avoiding requests for personal information or payments via wire transfers or gift cards.
Trump commits to defending Social Security and SSI
President Donald Trump has reaffirmed his commitment to protecting Social Security as part of broader federal spending and reconciliation efforts, as he continues to court seniors as a voter base.
“One thing I said, and I gave my word,” Trump said. “We are not going to hurt anyone on Medicaid, Medicare, or Social Security.
“We’re doing great on Social Security, and we’re going to protect it.”
Recent Republican legislation, such as the One Big, Beautiful Bill Act, offers seniors temporary tax breaks of up to $6,000, potentially increasing disposable income.
However, economist Laurence Kotlikoff pointed out that low-income retirees may receive little benefit from the deductions.
“If a person’s income is low and their tax rate is low to begin with, they will not get much of a tax break from the deductible,” Kotlikoff explained, implying that many people will not benefit from the Trump administration’s move.
So, with the September 2025 COLA, beneficiaries can expect higher monthly payments, protecting their income from inflation and maintaining financial stability.
Recipients are encouraged to check their my Social Security accounts to confirm new payment amounts and make sure they are ready for the updated benefits.
