You’ve probably seen the headlines already. Or maybe you just noticed your first check of the year looked a little different. Either way, the increase in social security for 2025 is officially here, and honestly, it’s a bit of a mixed bag.
For 2025, the Social Security Administration (SSA) settled on a 2.5% cost-of-living adjustment (COLA). If that feels smaller than the jumps we saw in 2023 or 2024, that’s because it is. Inflation cooled down throughout last year, and the COLA follows that lead. But while the percentage is lower, there are a lot of moving parts—like Medicare premiums and new earnings limits—that change how much of that "raise" you actually keep.
How much is the increase in social security for 2025?
Let’s talk real numbers.
A 2.5% increase means the average retired worker is seeing about $49 more per month. That takes the average check from roughly $1,927 to $1,976. Of course, "average" is a tricky word. If you’re a high earner who retired at full retirement age, your maximum monthly benefit could have jumped to **$4,018** this year.
It’s not just retirees, though.
- Couples: A married couple both receiving benefits is seeing an average bump of about $75, bringing their total to $3,089.
- SSI Recipients: People on Supplemental Security Income saw their federal payment standard move to $967 for individuals and $1,450 for couples.
- Survivors: An aged widow or widower living alone is now averaging about $1,832.
Basically, the 2.5% is applied to your primary insurance amount. It’s the lowest increase we’ve seen in about four years, following the massive 8.7% boost in 2023 and the 3.2% increase in 2024.
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The Medicare "Cliff" and Your Net Check
Here is where it gets kinda annoying.
Most people have their Medicare Part B premiums deducted directly from their Social Security check. For 2025, the standard Part B premium rose to $185 per month. That’s a $10.30 increase from last year.
If your Social Security raise was $49, but Medicare took an extra $10.30, your "real" increase is closer to $38.70. It’s still more money, sure, but it feels a lot less like a win when the cost of eggs and insurance is still creeping up.
Working While Retired: The New 2025 Limits
If you’re under your Full Retirement Age (FRA) but already taking benefits, you have to watch the "earnings test." This is a big one. If you earn too much at a job, the SSA starts clawing back benefits.
In 2025, the annual earnings limit is $23,400.
If you earn more than that, they take $1 for every $2 you earn over the limit. It’s a steep penalty. However, if you reach your FRA during 2025, the limit is much more generous: **$62,160**. In that specific year, they only take $1 for every $3 you earn until the month you actually hit your birthday.
Once you are at full retirement age? The limit vanishes. You can earn a million dollars a year and they won't touch your Social Security check.
The Big Repeal: WEP and GPO Changes
This is the part many people missed.
In late 2024, Congress actually did something surprising. They passed the Social Security Fairness Act, which repealed the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
For decades, these two rules slashed benefits for millions of teachers, police officers, and firefighters who had "non-covered" pensions from state or local governments. Because the repeal is retroactive into 2024, many people affected by these rules are seeing a much larger increase in social security for 2025 than the standard 2.5% COLA. Some are even getting lump-sum back payments. If you were losing half your benefit to WEP, this is life-changing.
Taxes and the Wage Base
If you’re still working and making good money, the 2025 update hits your paycheck too. The maximum amount of earnings subject to Social Security tax—the "taxable wage base"—jumped to $176,100.
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Last year it was $168,600.
This means high earners are paying the 6.2% FICA tax on an extra $7,500 of income this year. If you’re self-employed, you’re feeling it double because you pay both the employer and employee share.
What should you do now?
- Check your "my Social Security" account. The SSA sent out COLA notices in December, but you can still log in to see your exact 2025 benefit amount and your 1099-R for tax season.
- Adjust your tax withholding. If your benefit went up and you have other income, you might find yourself in a higher tax bracket. You can file a Form W-4V to have federal taxes taken out of your check so you don't get a surprise bill next year.
- Audit your Medicare plan. With the Part B premium hike, now is a good time to look at your Part D or Medicare Advantage plan to ensure you aren't overpaying for coverage you don't need.
- Watch the 2026 outlook. While it's early, early projections for the next COLA (announced in October 2025 for 2026) are already hovering around 2.8% due to some stubborn inflation late last year.
The increase in social security for 2025 might not be the windfall everyone hoped for during the peak of inflation, but for the 71 million Americans who rely on it, every dollar counts. Just make sure you're looking at the net amount after Medicare and taxes, not just the gross percentage.