We’re about a week away from the 2025 Social Security cost-of-living adjustment (COLA) announcement. All beneficiaries will soon be able to estimate how much their checks will increase next year, with the new benefit amounts kicking in during January.

Naturally, much of the focus is on how much more retired workers will get next year, but those claiming spousal benefits also have larger checks on the way. However, the latest projections suggest broader budget changes might be in order for 2025.

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The 2025 COLA will probably be around 2.5%

The latest estimates from The Senior Citizens League (TSCL) put the 2025 Social Security COLA at around 2.5%. That’s 0.7% less than the 2024 COLA. This is due to cooling inflation. There’s a small chance the COLA could be higher depending on where September inflation data comes in, but this is unlikely.

A 2.5% COLA would boost the average retired worker’s benefit from $1,920 per month in August 2024 to $1,968 per month — a $48 increase. If your current benefit is larger than this, you’ll probably see your checks increase even further. On the other hand, if you have a smaller benefit, you’ll get less.

Spousal Social Security benefits are typically less than retired workers’ benefits simply because of the formula used to calculate them. At most, they’re worth one-half of the workers’ benefit at their full retirement age (FRA). The average spousal benefit, as of August 2024, is $910 per month. A 2.5% COLA would add about $23 per month, bringing the new average to somewhere around $933 per month in 2025.

Together, a couple receiving the average retired worker benefit and the average spousal benefit would get an extra $71 per month with a 2.5% COLA. That’s another $852 annually.

Looking ahead to 2025

We won’t know the real 2025 COLA until Oct. 10. The Social Security Administration will share the news on its website. Once you know what it is, you can estimate your 2025 checks by adding the COLA percentage to your existing checks. This might be off by a dollar or two, but it should be pretty close.

If you’re still not sure how much you’ll get, keep an eye out for a personalized COLA notice coming your way in December. Those with my Social Security accounts should be able to access the notice early in the month. You’ll also get a notice in the mail.

Compare your new monthly Social Security income with your average monthly expenses. Your checks may not go as far as you expected. Many feel the COLAs don’t actually help benefits keep up with inflation like they’re supposed to.

To combat this, you may have to rely upon other retirement income sources, like:

• Personal savings: Personal savings are the ideal Social Security supplement if you’ve got them. You may need to increase your retirement account withdrawals in 2025 to cover what Social Security doesn’t.
• A job: A job gives you another source of consistent monthly income alongside your Social Security checks. This could also reduce how quickly you spend your personal savings.
• Other government benefits: If you’re unable to work and lack adequate savings, you may be eligible for other government benefits to help with things like food, housing, utilities, and healthcare. These programs generally have income requirements, and application processes can take time, so it’s best to look into these as soon as possible if you plan to use them in 2025.

Sketch out a plan for how you’ll cover your expenses before your new checks arrive. Then, after a month or two with your new benefit, review how you’re doing and make adjustments as needed to carry yourself through the rest of the year.

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