The average couple receiving Social Security benefits in 2024 takes home $3,014 per month. That amounts to more than $36,000 annually. It’s a decent chunk of money, but it’s probably not enough to cover most couples’ retirement expenses alone, especially amid the high inflation of the last few years.

Fortunately, that inflation has cooled, but that also means a smaller cost-of-living adjustment (COLA) next year for retirees. With these first new checks just a few weeks away, it’s crucial to understand how much more you’ll get so you can budget accordingly for 2025.

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Everyone’s getting a 2.5% raise next year

The 2025 Social Security COLA is 2.5%. That’s less than the 3.2% beneficiaries got in 2024 and well under the 8.7% they got in 2023. This is due to cooling inflation, which has slowed the rate the cost of goods are going up.

The $3,014 average household benefit for a retired couple will rise to $3,089 next year. That’s $75 more per month and $900 more per year. It’s a step up over the $49 average increase that a single retired worker will receive next year, but it could still fall short of your actual needs.

However, keep in mind the COLA is based on a percentage of your existing benefit. If the checks you’re receiving today are higher than the $3,014 average benefit in 2024, you’ll get a bigger bump in 2025.

You can get a good approximation of your 2025 household benefits by multiplying your 2024 benefit by 2.5%. The Social Security Administration will also mail you personalized COLA notices in December giving your exact benefit amount for next year. If you have a my Social Security account, you’ll also be able to access this notice through your Message Center beginning in early December.

The government will send the first checks with the new COLA amount included in January 2025. Your exact payment date depends on the day of the month you were born:

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

If you have any questions about your COLA, reach out to the Social Security Administration. But wait until after you’ve received your COLA notice in December. This may clarify some things for you.

What if the COLA isn’t enough?

Though COLAs are supposed to help Social Security’s buying power remain steady, this isn’t how it works in practice. Benefits have actually lost about 20% of their buying power since 2010, according to The Senior Citizens League (TSCL).

Many argue the government should change how it calculates COLAs to halt this erosion of purchasing power. But the government hasn’t shown any signs of movement on this issue so far. It falls to retirees to find ways to make ends meet. This may not be too difficult if you have a lot of personal savings to supplement your checks.

When you don’t have much savings to fall back on, you might have to make some difficult choices. This could involve:

• Reducing spending when possible
• Working part- or full-time to supplement your checks
• Delaying retirement, if you’re still working
• Exploring government assistance programs

These options aren’t ideal, but they might be necessary to make ends meet in 2025. If you feel you may have to take one or more of the above steps, start planning now. Figure out how much you expect to come up short next year and then decide upon the best way to get the funds you need. If you wait until 2025 to start working on this, you could find yourself in a tight financial spot.

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