In July 2025, millions of Social Security beneficiaries in the United States will receive a small increase in their monthly payments. This will be thanks to the previously announced 2.5% cost-of-living adjustment (COLA). This adjustment, which began to be reflected in January's payments this year, aims to mitigate the impact of inflation on those with fixed incomes.
The COLA is calculated each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a specific measure of inflation. For 2025, this increase is lower compared to previous years, but it remains an important help for those who rely on Social Security to cover their daily needs.
How does this increase in payments affect people?
The 2.5% increase applicable to July payments is the same as the one in January, and it is not an additional adjustment. This means beneficiaries will not see an extra increase in the middle of the year. However, the adjustment made in January is already having a tangible impact on monthly benefits.
In practical terms, an average retiree who received $1,927 in 2024 will see their monthly payment increase by about $49, reaching $1,976. For married couples whose combined benefit was $3,014, the adjustment raises the amount to $3,089 per month, a significant increase of $75. Over the course of the year, this represents an increase of about $588 for individuals and around $900 for couples.
July payment schedule
Payments are distributed according to the usual staggered schedule of the Social Security Administration (SSA). Beneficiaries receive their payments based on their birth date, and payments will not be altered in July by this adjustment. Those born in the first third of the month will receive their payments at the beginning of the month, while the rest will receive them throughout that same month.
Although a $49 monthly increase may seem modest, it is crucial to help beneficiaries keep their purchasing power in the face of prices for essential goods. For example, food, housing, and medical care. Although inflation has decreased compared to 2023 levels, it remains a key factor affecting households with fixed incomes.
What can we expect for the next COLA?
Looking ahead to 2026, another modest adjustment is expected, with a preliminary estimate of around 2.2%. This would be the third consecutive year of lower adjustments after the inflationary peaks of the pandemic. The final figures will depend on the evolution of inflation in the second half of this 2025, so this adjustment could change depending on the economy.