The 2025 COLA will be announced in October 2024 and take effect in January 2025, not July

Social Security's annual cost-of-living adjustment, called a COLA, does not happen in July. The Social Security Administration announces the COLA percentage each October, based on inflation data from the third quarter of that year. The increase then goes into effect on the first payment of the following January — typically January 3rd for most beneficiaries.

If you are looking for information about a July 2025 payment change, it may be a state supplement increase (some states add money to federal Social Security payments), a change in your personal circumstances, or a correction to your record. Those happen outside the annual COLA schedule.

The COLA percentage itself is set by law and cannot be changed by the Social Security Administration or Congress. It is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured from the third quarter of one year to the third quarter of the next.

Key Takeaways

  • Social Security's annual cost-of-living adjustment takes effect in January each year, not July.
  • The COLA percentage is announced in October and is based on inflation data from July through September.
  • The 2024 COLA was 3.2 percent, applied to January 2024 payments; the 2025 COLA will be announced in October 2024.
  • Your January 2025 benefit amount will reflect the 2025 COLA increase if you receive Social Security retirement, survivor, or disability benefits.
  • Supplemental Security Income (SSI) payments also receive the same COLA increase, effective January 1st each year.

How the COLA is calculated and announced

The Social Security Administration uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to measure inflation. Specifically, it compares the average CPI-W for July, August, and September of one year to the average for the same three months of the previous year. If there is an increase, that percentage becomes the COLA for the following January.

The announcement happens in mid-October each year. For the 2025 COLA, the Social Security Administration will announce the percentage on October 10, 2024. You can find this announcement on the official Social Security website (ssa.gov) or by calling Social Security at 1-800-772-1213.

If inflation has been flat or negative compared to the prior year, there is no COLA increase — your benefit stays the same. This has happened only three times since COLAs began in 1975: in 2010, 2011, and 2016.

When the 2025 COLA takes effect and how to find your new amount

The 2025 COLA increase will appear in your January 2025 Social Security payment. For most beneficiaries, payments arrive on the third, fourth, or fifth Wednesday of each month, depending on your birth date. The first payment reflecting the 2025 COLA will arrive on the Wednesday that falls in the first full week of January 2025.

You can see your new benefit amount before January arrives. Starting in December 2024, you can log into your my Social Security account at ssa.gov to view your updated payment amount. You can also call Social Security at 1-800-772-1213 or visit a local Social Security office to ask about your 2025 benefit.

Your Social Security statement will also be updated to show the new amount. If you receive a paper statement in the mail, it will reflect the 2025 COLA. If you use my Social Security online, the amount updates automatically.

Who receives the COLA increase

If you receive Social Security retirement benefits, you will receive the 2025 COLA increase automatically — no action is needed on your part. The same is true if you receive survivor benefits (as a spouse, child, or parent of a deceased worker) or Social Security Disability Insurance (SSDI).

Supplemental Security Income (SSI) recipients also receive the COLA increase, effective January 1st. SSI is a separate program from Social Security retirement and disability, but it uses the same COLA percentage each year.

Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) reductions to your benefit are recalculated each year using the new COLA amount, so your net payment may change by more or less than the COLA percentage itself.

What the 2024 COLA was and what to expect for 2025

The 2024 COLA was 3.2 percent. This means that if you received $1,000 per month in December 2023, your January 2024 payment was $1,032. The 2025 COLA will depend on inflation data from July through September 2024 and will be announced in October 2024.

You cannot predict the 2025 COLA in advance because it depends on inflation that has not yet occurred. Some people estimate it based on recent inflation trends, but the Social Security Administration does not publish a forecast. The actual percentage will be announced on October 10, 2024.

For planning purposes, you can review past COLA increases on the Social Security website. Since 2000, COLAs have ranged from 0 percent (in 2010, 2011, and 2016) to 8.7 percent (in 2023). The average over the past 20 years has been around 2.5 percent, but this varies significantly year to year.

How COLA affects Medicare premiums and other deductions

Your Social Security benefit increase may be partly or entirely offset by changes to your Medicare Part B premium. Medicare Part B premiums are deducted directly from most Social Security payments. If your Medicare premium increases, your net Social Security payment may not rise by the full COLA percentage.

However, there is a hold harmless rule that protects most beneficiaries. If your Medicare Part B premium increase would reduce your net Social Security payment below what you received in December of the prior year, Medicare will absorb the difference and your payment stays the same or increases slightly. This rule does not explore if you are new to Medicare or if you did not receive Social Security in December of the prior year.

Other deductions from your Social Security payment — such as taxes withheld, court-ordered garnishments, or voluntary payments to other programs — are not affected by the COLA increase itself, but your gross benefit amount (before deductions) will increase by the COLA percentage.

Frequently Asked Questions

Will my Social Security payment increase in July 2025?

No. Social Security payments increase once per year, in January. The 2025 increase will appear in your January 2025 payment. If you see a change in July 2025, it is likely due to a change in your personal circumstances, a correction to your record, or a state supplement adjustment — not the annual COLA.

How much will my benefit increase in January 2025?

The exact percentage will be announced in October 2024. You can multiply your current monthly benefit by that percentage to estimate your new amount. For example, if the COLA is 2.5 percent and you receive $1,500 per month, your new amount would be approximately $1,537.50.

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

No. The COLA increase is applied automatically to all Social Security and SSI payments. You do not need to contact Social Security, file any form, or take any action. The increase appears in your January payment without any request from you.

What if I disagree with my new benefit amount in January 2025?

Contact Social Security to review your record. Call 1-800-772-1213, visit ssa.gov, or go to your local Social Security office. They can explain how the COLA was applied to your specific benefit and answer questions about your payment calculation.

Does the COLA increase affect my taxes on Social Security benefits?

The COLA increase may affect how much of your Social Security is subject to federal income tax, depending on your total income for the year. The increase itself is not taxed separately — it is part of your regular Social Security income and follows the same tax rules as the rest of your benefit.