Social Security Increase 2025: Official Guidelines to Maximize Your Monthly Check

On: Thursday, April 10, 2025 6:34 AM

If you’re retired, receiving disability benefits, or planning to take advantage of Social Security, the 2025 Social Security raise (COLA) is important news for you. This year, Social Security is increasing by 2.5%, which will provide some relief to millions of people.

Whether you’re already receiving benefits or planning for the future, it’s important to know how much this increase will benefit you and how you can increase your monthly payment even more.

What has changed in Social Security in 2025?

Each year, the US Social Security Administration (SSA) changes Social Security payments according to inflation, which is called the Cost-of-Living Adjustment (COLA).

The COLA for 2025 has been set at 2.5%. Meaning, if a retired person was currently receiving $1,927 every month, now from January 2025, they will get about $1,976 – that is, about $49 more.

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Why is COLA so important?

COLA is a way to maintain the purchasing power of Social Security beneficiaries. As inflation increases – food, electricity, water, medical expenses – if your income does not increase, it may become difficult for you to survive. That’s why the government ensures every year through COLA that you can keep pace with inflation.

How to increase your Social Security benefit?

Now don’t be satisfied with just COLA, by adopting some smart methods you can significantly increase your lifetime Social Security benefit.

1. Work for at least 35 years

SSA determines Social Security payment by averaging your highest earning 35 years. If you have worked for less than 35 years, then $0 income is added in place of the empty years, which reduces the average.

👉 Example:
If you only worked for 30 years, the SSA will average the other 5 years as $0, which will reduce your monthly benefit.

Tip:
Work a little more, even part-time, to fill in the empty years and average out your earnings.

2. Claim retirement as late as possible

You can start taking Social Security benefits as early as 62, but that reduces your payment.

👉 Example:

If your Full Retirement Age (FRA) is 67 and you claim at 62, you’ll only get 70% of your benefits.
But if you wait until 70, you could get up to 124% of your benefits.
Maximum monthly benefit at age 70 in 2025: $4,873

Tip:
If you are in good health and have other sources of income, waiting until age 70 will provide more money over a lifetime.

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3. Check your earnings record each year

Your Social Security benefit is directly based on your earnings. If your income is recorded incorrectly, your future benefits could be lower.

👉 What to do:

Create a “My Social Security Account”
Check your earnings information each year
If you find any errors, report them immediately

Keep in mind:
A small mistake could cost you thousands of dollars in the future.

4. Increase your earnings

The more you earn (up to a maximum of $168,600 in 2025), the more your Social Security benefit will be in the future.

👉 How to increase income:

Take a promotion, work overtime
Find bonuses or side income options
Get a professional certificate to advance your career

Spouses plan together

If you’re married, you can plan for Social Security together:

One partner can take benefits early so there’s income in the household

The other partner can increase their payment by delaying benefits

Survivor benefits:

If one partner dies, the other partner may be entitled to more benefits – so this strategy is important when claiming.

Understand the Earnings Test

If you start taking benefits before FRA and are still working, the SSA may cut your benefits.

👉 2025 limits:

Before FRA: $1 deducted for every $2 earned over $22,320
Year you reach FRA: $1 deducted for every $3 earned over $59,520

Note:
This deduction is not permanent. After you reach FRA, the SSA recalculates and adds back your benefits.

7. Plan for taxes

Your Social Security benefits may also be taxed depending on your income.

👉 limits:

For single filers: $25,000+
For married couples: $32,000+

Tip:
Planning withdrawals from an IRA or Roth account can help you reduce taxes.

Get benefits for children and dependents

If you have minor children or a disabled dependent, they may also be entitled to additional benefits based on your earnings.

👉 Example:
If a retiree has young children, they can receive up to an additional 50% of benefits – increasing the total household income.

Common mistakes to avoid:

Claiming at 62 without planning
Not reviewing your earnings record each year
Not planning for combining spousal benefits
Not planning for taxes
Not understanding the effects of longevity and inflation
Ignoring dependents’ benefits

Conclusion

Social Security payments may increase by 2.5% in 2025, but don’t rely on that alone. If you plan properly, increase your earnings, be smart about claiming, and consider your family’s needs – you can benefit by thousands of dollars more over a lifetime. Start planning now – because a little understanding today can make your retirement much easier.

FAQs

Q1: Will Social Security payments increase in 2025?

A: Yes, the Social Security Administration is expected to implement a cost-of-living adjustment (COLA) in 2025, which may increase monthly benefits depending on inflation rates.

Q2: How can I find out how much more I’ll receive in 2025?

A: You can check your estimated benefits by logging into your mySocialSecurity account on the SSA website. The COLA announcement usually comes in October.

Q3: What factors determine the Social Security increase each year?

A: The annual COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The increase aims to offset inflation.

Q4: Are there ways to maximize my Social Security check in 2025?

A: Yes. Delaying your retirement age, working longer, and ensuring you’ve earned enough credits (40 credits) can all help increase your benefit amount.