It’s official: The new cost-of-living adjustment (COLA) for 2025 is here. The Social Security Administration recently announced that beneficiaries will be receiving a 2.5% raise starting in January of next year.

If you’re receiving spousal or divorce benefits, you’ll also be entitled to the monthly bonus. Here’s how much the average and maximum benefit will go up in 2025, as well as an important note about the future of Social Security.

What are spousal and divorce benefits?

First, it’s a good idea to know what, exactly, this type of Social Security is and whether you qualify.

You may be entitled to spousal benefits if you’ve been married for at least one year and are age 62 or older. You could also qualify if you’re caring for a child who is either disabled or under age 16, regardless of your age.

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Divorce benefits have a slightly longer list of requirements. You cannot currently be married, to start, and your previous marriage also must have lasted for at least 10 years. Like with spousal benefits, you’ll also need to wait until you’re at least 62 years old to begin claiming.

If you also qualify for retirement benefits based on your work history, you’ll only collect the higher of the two amounts. So, for instance, if you’re receiving $1,000 per month in retirement benefits and could qualify for $1,500 per month in spousal benefits, your total payment would be $1,500 per month.

Social Security benefits are going up in 2025

The average spouse of a retired worker collects around $910 per month in benefits, according to data released by the Social Security Administration in September 2024.

When the 2.5% COLA takes effect in January 2025, the average benefit will increase by roughly $23 per month.

The maximum spousal and divorce benefit will also be increasing next year. With both types of benefits, the most you can collect is 50% of your spouse’s or ex-spouse’s benefit amount at their full retirement age. Starting in 2025, the maximum possible benefit at full retirement age will be $4,018 per month, meaning the maximum spousal or divorce benefit will be $2,009 per month.

The not-so-good news about the COLA

Collecting an extra $20 or so per month in spousal or divorce benefits can be helpful, especially if money is tight in retirement. However, if possible, it may be wise to find other sources of income to lean on outside of Social Security.

Benefits have been struggling to keep up with inflation, losing around 20% of their buying power since 2010 alone, according to a 2024 report from The Senior Citizens League. While the annual COLAs can help in the short-term, historically, they haven’t been enough to help Social Security keep up with rising costs.

If you’re already retired and living on a fixed income, there may not be much you can do right now. But if it’s possible to increase your savings or pick up a source of passive income, that could help reduce how much you’ll need to depend on Social Security. If benefits continue losing buying power, that can better protect your finances going forward.

Social Security can help make ends meet in a time when many retirees are struggling, and if you’re collecting spousal or divorce benefits, the COLA can provide a helpful boost. However, it’s also important to recognize Social Security’s limits to protect your retirement as much as possible.

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