The Social Security Administration (SSA) has announced adjustments for beneficiaries of the Social Security Supplemental Income (SSI), Social Security Disability Insurance (SSDI) and Veterans Affairs (VA) programs in 2025. The modifications seek to mitigate the impact of inflation and ensure that payments maintain their ability to cover basic needs.
One of the most significant changes is the cost of living adjustment (COLA), which in 2025 will be 2.5%. This increase will benefit more than 72.5 million people who receive monthly Social Security payments, allowing them to compensate for the rise in the cost of living.
Increase in Social Security payments
The COLA adjusts payments based on inflation and the consumer price index, with the aim of preserving the purchasing power of beneficiaries. For retired workers, the average monthly benefit in 2025 will be approximately $1,976, which represents an increase of $49 over the previous year.
Payout amounts also vary according to retirement age. Those who retire before reaching full retirement age will receive a reduced amount, while those who delay their retirement will be eligible for higher benefits.
New income limit for retired workers
People who continue to work after the age of 62 could have their benefits temporarily suspended if their income exceeds a certain threshold. By 2025, this limit will increase to $23,400, which represents an increase of $1,080 compared to the 2024 limit of $22,320.
These changes form part of the annual update of Social Security, designed to adjust payments to economic conditions and guarantee the financial stability of beneficiaries.
