The Social Security Administration (SSA) implemented the Cost of Living Adjustment (COLA) for the fiscal year 2025, which was set at 2.5%. This increase, determined by fluctuations in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), applies to payments under retirement, disability, survivors’ benefits, and SSI programs.
The CPI-W was measured utilizing data from the third quarter of 2023 to the third quarter of 2024. The adjustment over the Social Security benefits took effect in January 2025, with the goal of preserving beneficiaries’ purchasing power against economic fluctuations.
Your 2025 maximum Social Security benefit explained
The moderate increase in the COLA for 2025 contrasts with the adjustments recorded in previous years, which were significantly higher due to post-pandemic inflationary pressures.
The increase is applied automatically and requires no action on the part of beneficiaries. The new amounts are reflected directly in monthly deposits, providing an increase in disposable income for retirees, people with disabilities, and families of survivors.
For a worker who chooses to retire at full retirement age in 2025, which is 67 for those born in 1960 or later, the maximum monthly benefit has been set at $4,018. This amount is contingent on an employment history where the individual has earned income equal to or greater than the maximum taxable income for at least 35 years.
The basis for this calculation is the Average Indexed Monthly Income (AIME), which must be $13,689 to reach this maximum benefit.
The formula used to calculate the Primary Insurance Amount (PIA) incorporates specific flex points for 2025, set at $1,226 and $7,391. The timing of retirement substantially alters the final figure. If a beneficiary claims their benefits at age 62, the amount is reduced by approximately 30%, resulting in a monthly payment of $2,831.
On the other hand, delaying retirement beyond full retirement age generates delayed retirement credits. A worker who postpones retirement until age 70 can access a maximum benefit of $5,108 per month, which represents a substantial increase thanks to the accumulated 8% annual credits. At the same time, the maximum earnings subject to Social Security contributions for 2025 was raised to $176,100.
Averages of the OASDI and SSI programs
SSA operational data for July 2025 provide a detailed view of average monthly benefits, which remain stable and are comparable to September. The overall average for all beneficiaries of the OASDI program, which includes retirement, disability, and survivors benefits, is from $1,800 to $2,000. This amount is distributed among approximately 69.9 million people.
A breakdown by category shows that individual retired workers receive an average of $2,006.69. This group constitutes the largest group, with 53.17 million beneficiaries. The averages for dependents of retirees are $954.19 for spouses and $924.47 for children. Among survivors, the average payment is $1,574.28, with specific amounts varying according to family composition.
Under the disability program, disabled workers receive an average of $1,582.38 per month. Their family members also receive support, averaging $445.21 for spouses and $508.91 for children. Eligibility to continue receiving these benefits is subject to Substantial Work Activity (SGA) thresholds, set at $1,620 for non-blind workers and $2,700 for blind workers in 2025.
Maximum payments for those receiving SSI
The Supplemental Security Income (SSI) program, intended for low-income individuals with disabilities or over the age of 65, operates under separate parameters. The maximum federal payment for 2025 is $967 for individuals and $1,450 for couples.
However, the average effective payment recorded in July 2025 is considerably lower, at $716.09 for approximately 7.395 million recipients.
Average amounts vary slightly by age group, with an average of $836.16 for beneficiaries under 18. A significant subset of 2.535 billion people receive benefits from both the OASDI and SSI programs simultaneously, a combination that increases their total income. The strict resource limits for SSI eligibility remain unchanged: $2,000 for individuals and $3,000 for couples.
