Social Security benefits and Supplemental Security Income (SSI) payments will increase 2.5 percent in 2025, the Social Security Administration announced.

On average, Social Security retirement benefits will increase by about $50 per month starting in January.

Over the past decade, the COLA (cost of living adjustment) has averaged about 2.6 percent. For 2024, the increase was 3.2 percent.

The next increase affects nearly 68 million Social Security beneficiaries. For 7.5 million people receiving SSI benefits, the increase takes effect Dec. 31. Some people receive both benefits.

COLA’s are calculated based on increases in the Consumer Price Index for urban wage earners and clerical workers as determined by the federal Department of Labor’s Bureau of Labor Statistics.

In 2025, the maximum amount of earnings subject to the Social Security tax will increase to $176,100, up from the current $168,600, officials said.

The Social Security Administration will mail letters to people about their new benefit amount starting in December. Officials said the notice has been changed to use plain and personalized language giving dates and dollar amounts of a new benefits and any deductions. The notices can also be viewed online through beneficiaries’ personal accounts.

In recent years, the high-water mark for increases was in 2023, when it was 8.7 percent. The year before that, the increase was 5.9 percent. From 2017 to 2021, the amounts ranged from less than 1 percent to 2.8 percent.

Information about Medicare changes for 2025 will be available at www.medicare.gov.

APPOINTMENTS (OR NOT) AT SOCIAL SECURITY OFFICES

Starting Jan. 6, 2025, appointments will be required for service at Social Security field offices, but with some exceptions. People who can’t handle their business with Social Security online can call a local office or a national line (1-800-772-1213). Officials also said no one will be turned away at offices if they can’t or don’t want to make an appointment and want to just walk in. This includes members of vulnerable populations, military personnel, people with terminal illnesses, and individuals with other situations requiring immediate or specialized attention. Some offices have minimal to no wait times, according to officials.