Major Changes in 2025 New Social Security Benefits for Couples Set to Transform Payments

Beneficiaries look forward to the annual boost in Social Security payments. Given that most people have a fixed income (which does not mean it does not increase; rather, it increases from a fixed amount that never changes, as opposed to salaries, which can grow exponentially), any increase is considered good news, especially in years like this one when people are still dealing with high inflation and the effects of the pandemic.

Given that inflation surpassed the Cost of Living Adjustment (COLA) during the first half of 2024, it’s unsurprising that many seniors were skeptical of the 2025 adjustment. Those who expected it would be low were unhappily correct, as it was revealed to be 2.5% on October 10, and that figure is set in stone.

Although experts disagree on whether or not this is a good thing, a lower COLA means cooler inflation data, whereas a higher COLA would allow for some breathing room as long as the new year does not spike it again. What everyone can see is that depending on how much in benefits pensioners were already receiving, this increase will go further or leave them in the same position.

According to Social Security Administration data, the average couple receiving Social Security benefits in 2024 earns $3,014 per month, totaling more than $36,000 per year. Even while this is not a horrible amount, it is insufficient to pay most people’s needs. However, Social Security benefits were designed to cover only around 40% of expenses during retirement, with the remainder covered by a pension or a retirement account.

The Social Security COLA increases

Taking into account the 2.5% rise, the average retired couple getting the average $3,014 monthly Social Security benefit in 2024 will see a $75 boost in 2025, bringing their check total to $3,089. That would be $900 extra per year, but it may not be enough to offset escalating costs.

To estimate your new benefit, multiply the 2024 amount by 2.5%, as the cost-of-living adjustment (COLA) is a percentage of your existing benefit. If you wish to double-check your math, formal COLA notices will arrive in December, either by mail or through your Social Security account online. Your check will reflect the increase that begins in January 2025. Your exact payment date is based on the day of the month you were born:

Born between the 1st and the 10th: January 8, 2025.
Born between the 11th and the 20th: January 15, 2025.
Born between the 21st and the 31st: January 22, 2025.

What if the COLA isn’t sufficient?

The truth is that for many families, this rise will not cover all of the additional expenses that 2024 has brought, and it hasn’t for a long time. According to the Senior Citizens League (TSCL), benefits have lost around 20% of their purchasing power since 2010, and they are unlikely to regain their standard very soon.

This is because COLAs for seniors are calculated using the erroneous CPI, but lawmakers have yet to accept legislation to address the issue. They employ the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rather than the CPI-E, which is weighted toward individuals aged 62 and up and focuses more on healthcare and other elderly issues. There are some things retirees can do to enhance their savings or income while retired, some of which include: