Social Security benefits receive a cost-of-living adjustment (COLA) each year to keep up with inflation. In January 2024, payments rose by 3.2% over 2023, according to the Social Security Administration.
That works out to an average of about $55 more a month for the nearly 67 million Americans who receive Social Security checks.
The official COLA for 2025 won't be announced until mid-October 2024, but the nonpartisan Senior Citizens League predicted in July that it will be a more modest2.63%.
Social Security COLA
- What is Social Security's COLA?
- How is the cost-of-living adjustment calculated?
- When you can start collecting Social Security
- How much is the average Social Security check?
- When to expect your check
- FAQs
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What is Social Security's COLA?
Since 1975, the Social Security Administration (SSA) has made an annual cost-of-living adjustment to account for changes in inflation. The COLA in 2024 was 3.2%. Here are theannual increasesfor the last five years:
- 2019: 2.8%
- 2020: 1.6%
- 2021: 1.3%
- 2022: 5.9%
- 2023: 8.7%
Benefits may stay static, though it's rare: Since being instituted in 1975, the COLA has only been 0% In 2009, 2010 and 2015.
How is the cost-of-living adjustment calculated?
The COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which the Bureau of Labor Statistics calculates by looking at the average prices of household goods like food, housing and transportation.
The COLA for any given year is determined by the CPI-W in the third quarter of the previous year. The COLA for 2025 will be announced in October 2024, based on data from July to September.
When you can start collecting Social Security
Eligible workers can begin receiving Social Security benefits at age 62. But you'll get a reduced monthly payment if you don't wait until you're atfull retirement age.
| Birth year | Full retirement age |
|---|---|
| 1957 or earlier | Already eligible |
| Born in 1958 | 66 and 8 months |
| Born in 1959 | 66 and 10 months |
| Born 1960 or later | 67 |
Source: Social Security Administration. If you were born on January 1, your birthday is counted as if it was in December of the previous year.
How much is the average Social Security check?
In June 2024, the average monthly Social Security benefit for retired workers was $1,918. For all recipients — including spouses, children and disabled workers — the average check was $1,781.
Your individual payment depends on a variety of factors, including your income throughout your working years and what age you start claiming benefits.
Half of seniors who receive Social Security benefits count on them for at least 50% of their household income, according to the SSA. A quarter rely on their check for at least 90% of their income.
You can live more comfortably in retirement by supplementing your benefits with an employer-sponsored 401(k) or an individual retirement account (IRA). We ranked Charles Schwab and Betterment as among some of the best IRAs.
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When you can expect your check
Social Security benefits are sent out based on the day of the month you were born.
Social Security payment dates
| Date of Birth | Payment Day |
|---|---|
| 1st through the 10th of the month | Second Wednesday |
| 11th through the 20th of the month | Third Wednesday |
| After the 20th of the month | Fourth Wednesday |
If your payment date falls on a weekend or federal holiday, you should get your check the closest business day before. The full calendar of Social Security payment dates is available online.
FAQs
What is the Social Security cost-of-living adjustment for 2024?
The COLA for 2024 is 3.2%.
At what age do you get 100% of your Social Security?
Your full retirement age depends on the year you were born: If you were born in 1957 or earlier, you're already eligible for 100% of your Social Security benefits. After that, it rises gradually to 67 for anyone born in 1960 or later.
What is the Social Security cost-of-living-adjustment for 2025?
The official COLA for 2025 will be announced in October 2024. The Senior Citizens League predicts it will be 2.63%.
How is Social Security funded?
Social Security is funded through a dedicated payroll tax of 12.4%, split between workers and employers on income up to $168,600. (Self-employed people pay the full amount.) Contributions collected now pay for current recipients' benefits.
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