What the $587 monthly boost is and who receives it

The $587 figure refers to the average monthly increase that some Social Security recipients saw in January 2024, tied to the annual cost-of-living adjustment (COLA). COLA is a percentage increase applied each year to all Social Security benefits to account for inflation. The actual dollar amount each person receives depends on their current benefit amount — someone with a higher benefit gets a larger dollar increase, while someone with a lower benefit gets a smaller one.

Not everyone receives the same boost. Your increase is calculated by taking your current monthly benefit and multiplying it by the COLA percentage set for that year. The Social Security Administration announces the COLA percentage in October, and the new benefit amount begins in January. For 2024, the COLA was 3.2 percent. For 2025, it was 2.5 percent. These percentages change year to year based on inflation data.

You receive this boost automatically if you are already collecting Social Security retirement, survivor, or disability benefits. You do not need to do anything — the increase appears in your January payment without any action on your part.

Key Takeaways

  • The $587 monthly boost is the average COLA increase for 2024, but your actual increase depends on your current benefit amount.
  • COLA is a percentage increase announced each October and applied to all Social Security benefits starting in January.
  • You receive the increase automatically if you are already collecting Social Security; no action is required.
  • The COLA percentage changes every year based on inflation, so future increases will differ from $587.
  • Spousal benefits, survivor benefits, and Supplemental Security Income (SSI) also receive COLA adjustments, though SSI has different rules.

How COLA is calculated and announced

The Social Security Administration bases the COLA percentage on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation published by the Bureau of Labor Statistics. The agency compares the average CPI-W for the third quarter (July, August, September) of the current year to the average for the same quarter of the previous year. That comparison produces the COLA percentage.

The Social Security Administration announces the COLA percentage in mid-October each year. This announcement tells you what percentage increase will explore to your benefit starting in January. For example, in October 2023, the agency announced a 3.2 percent COLA for 2024. In October 2024, it announced a 2.5 percent COLA for 2025. If inflation is low or prices actually fall, COLA can be zero or very close to it — this happened in 2010, 2011, and 2016.

You can find the current and past COLA percentages on the Social Security Administration website under "Cost-of-Living Adjustment (COLA) Information." The site also shows historical benefit amounts so you can see how your own benefit has grown over time.

Who receives COLA and when it takes effect

All people receiving Social Security retirement benefits receive COLA. All people receiving Social Security disability benefits (SSDI) receive COLA. All people receiving Social Security survivor benefits — including spouses, children, and parents of a deceased worker — receive COLA. The increase applies to your benefit amount, and if you receive a spousal or survivor benefit, it applies to that amount as well.

Supplemental Security Income (SSI) recipients also receive a COLA increase, but SSI operates under different rules. SSI is a needs-based program, and the COLA increase may reduce your SSI payment if your other income rises above the limit. Your state may also supplement SSI, and state supplements do not always receive the same COLA increase as the federal portion.

The new benefit amount takes effect on the first payment of the month after you turn 62, or in January if you are already receiving benefits. If you were born on the second through the 31st of the month, your payment arrives on the second Wednesday of each month. If you were born on the first of the month, your payment arrives on the third Wednesday. The COLA increase appears in your January payment according to your regular payment schedule.

What the $587 figure represents and why it varies by person

The $587 monthly boost is the average increase across all Social Security beneficiaries in 2024. It is not a fixed amount that everyone receives. The Social Security Administration calculated this average by taking the total increase paid to all beneficiaries in January 2024 and dividing it by the number of beneficiaries. Because the increase is a percentage, not a flat dollar amount, people with higher benefits received larger dollar increases, and people with lower benefits received smaller ones.

If your current benefit is $1,000 per month, a 3.2 percent COLA increase gives you an additional $32 per month. If your current benefit is $2,000 per month, the same 3.2 percent increase gives you an additional $64 per month. The $587 average reflects the mix of all benefit amounts across the entire Social Security system. Your own increase will be different unless your benefit happens to be close to the average.

You can estimate your own COLA increase by taking your current monthly benefit, multiplying it by the COLA percentage for that year, and dividing by 100. For 2024 (3.2 percent COLA), multiply your benefit by 0.032. For 2025 (2.5 percent COLA), multiply your benefit by 0.025. This gives you the dollar amount you will receive as an increase.

How to find your benefit amount and track changes

You can view your current Social Security benefit amount by creating an account on the Social Security Administration website at ssa.gov. Once you log in, you can see your benefit statement, which shows your current monthly benefit, your earnings record, and your payment history. The statement updates after each COLA increase takes effect in January.

If you do not have an online account, you can call the Social Security Administration at 1-800-772-1213 (TTY 1-800-325-0778) to request your benefit statement by mail. You can also visit a local Social Security office in person. The office locator on ssa.gov shows the address and hours of the office nearest you.

Your benefit statement also shows your projected benefit amount at different ages if you have not yet started collecting. This helps you understand how your benefit will grow if you delay claiming, and how COLA will affect that future amount.

COLA and your taxes on Social Security benefits

A COLA increase may affect how much of your Social Security benefit is subject to federal income tax. The Social Security Administration uses two thresholds to determine this: a combined income threshold and a provisional income threshold. Combined income is your adjusted gross income plus nontaxable interest plus half your Social Security benefit. If your combined income exceeds the threshold, up to 50 or 85 percent of your benefit becomes taxable, depending on how far above the threshold you are.

When your benefit increases due to COLA, your combined income may cross one of these thresholds, making more of your benefit taxable. Conversely, if your other income stays the same and your benefit increases, the percentage of your benefit that is taxable may decrease. The exact effect depends on your individual tax situation. You can use the Social Security Administration's online tax calculator or speak with a tax professional to understand your specific situation.

State and local taxes on Social Security benefits vary by state. Some states do not tax Social Security at all, while others tax it under their own rules. A COLA increase does not change your state tax status, but it may change the dollar amount of state tax you owe if your state taxes Social Security benefits.

Planning around COLA increases and future benefit changes

COLA increases are automatic and predictable in timing — they always take effect in January — but the percentage varies year to year. If you are planning your retirement budget, you can assume some increase most years, but you cannot know the exact amount until October. The Social Security Administration publishes historical COLA percentages, which you can review to see the range of increases over time.

If you are still working and receiving Social Security before your full retirement age, a COLA increase does not change the earnings limit that reduces your benefit. In 2025, if you are under full retirement age for the entire year, Social Security reduces your benefit by $1 for every $2 you earn above $23,400. The earnings limit itself increases each year, but this is separate from COLA. A COLA increase to your benefit amount does not trigger a recalculation of your earnings reduction.

If you are deciding when to claim Social Security, remember that delaying your claim increases your benefit by about 8 percent per year until age 70. A COLA increase is in addition to this delayed retirement credit. If you claim at 62, you receive a lower starting benefit, but that lower amount also receives COLA increases each year. If you claim at 70, you receive a higher starting benefit, and that higher amount also receives COLA increases each year.

Frequently Asked Questions

Will I get the full $587 increase if my benefit is lower than average?

No. The $587 is an average, not a may provide amount. Your increase is calculated as a percentage of your current benefit. If your benefit is lower than the average, your dollar increase will be lower than $587. If your benefit is higher than average, your increase will be higher.

Do I need to do anything to receive the COLA increase?

No. The increase is applied automatically to your benefit in January. You do not need to contact Social Security, file any form, or take any action. The new amount will appear in your regular payment.

What if I am receiving both Social Security and SSI?

Both benefits receive COLA increases, but SSI has additional rules. Because SSI is needs-based, the COLA increase to your SSI benefit may be offset if your other income rises. Contact your local Social Security office or SSI representative to understand how the increase affects your specific situation.

Can COLA increase cause my Social Security benefit to be taxed?

Yes. If your COLA increase pushes your combined income above the federal tax threshold for Social Security benefits, more of your benefit becomes subject to federal income tax. This depends on your other income and filing status. A tax professional can help you understand your specific situation.

How far back do COLA increases go?

COLA has been part of Social Security since 1975. Before that, Congress had to pass a law to increase benefits. You can view the full history of COLA percentages on the Social Security Administration website, which shows the percentage for each year back to 1975.