Will Social Security payments increase in 2025? What to expect

New Yorkers will see the smallest rise in their Social Security cost-of-living adjustment (COLA) since 2021 next year.

The Social Security Administration announced Thursday the 2025 COLA will be 2.5%, down from 2024's 3.2% increase. Average beneficiaries will see their monthly payments rise by $50 next year to $1,957, up from $1,907 in January 2024.

Annual COLA is meant to keep beneficiaries’ purchasing power from being eroded by inflation. However, USA TODAY reported that hasn’t been the case, according to many older Americans. Eighty-three percent of older adults said in August a COLA of less than 3% would be insufficient, an AARP survey of 1,000 adults ages 50 and older says.

Here's what to know.

How is COLA calculated?

COLA is based on the percentage increase in the consumer price index for Urban Wage Earners and Clerical Workers from July through September of the last year as compared to the same three months of the current year. CPI-W tracks the overall inflation rate but can differ slightly.

In September, annual CPI-W rose 2.2% compared with a 2.4% overall inflation increase .

Current Social Security payments

Payments vary based on several factors , including years worked, total Social Security taxes paid, and retirement age:

• Retired Workers : Approximately $1,907 per month
• Retired Couples (filing jointly) : Around $3,303 per month
• Survivor Benefits : Average of $1,509.50 per month
• Spouses of Retired Workers : Average of $910 per month
• Children of Retired Workers : Average of $892.39 per month
• SSI Beneficiaries (Individuals) : Average of $943 per month
• SSI Beneficiaries (Couples) : Average of $1,415 per month

How to find out the amount you may receive in 2025

• Social Security COLA Calculator : Use the Social Security Administration’s benefits quick calculator to see potential payments.
• Inflation Adjustment Calculator : Check North State Bank’s calculator for adjusting payments for inflation.

Emily Barnes reports on consumer-related issues for the USA TODAY Network’s New York Connect Team, focusing on scam and recall-related topics. Follow her on Twitter and Instagram @byemilybarnes . Get in touch at ebarnes@gannett.com .

This article originally appeared on Rochester Democrat and Chronicle: Will Social Security payments increase in 2025? What to expect