The Social Security Administration (SSA) has announced that retirees in certain states will see larger increases in their Social Security payments in 2025. This adjustment, driven by the 2.6% Cost of Living Adjustment (COLA), will vary depending on the state and local median incomes.
2025 COLA: What to Expect
This Article Includes
According To lagradaonline, The projected 2.6% COLA for 2025 marks the lowest increase since 2021. This adjustment helps seniors maintain their purchasing power amidst rising inflation. However, the impact of this increase will differ by state due to variations in median income levels.
States with the Highest Social Security Payments
Due to higher median incomes, retirees in certain states will experience larger increases in their Social Security checks. The states expected to see the highest average payments are:
- New Jersey: $2,100
- Connecticut: $2,084
- Delaware: $2,064
- New Hampshire: $2,039
- Maryland: $2,008
These states have higher median wages, which contribute to larger Social Security benefits and higher COLA adjustments for retirees.
Why Some States See Larger Increases
Financial literacy expert Alex Beene explains that states with higher median incomes receive larger Social Security benefits due to the way calculations are made. This results in retirees in states like New Jersey and Massachusetts receiving more significant COLA increases.
Expected Social Security Payment Amounts for 2025
With the 2.6% COLA adjustment, the anticipated Social Security payment amounts for 2025 are as follows:
- Retirement Benefits: Average $1,949
- Survivor Benefits: Average $1,544
- SSDI Benefits: Average $1,577
- SSI Benefits: Average $716
These amounts reflect the expected increases based on the new COLA rates and are subject to change depending on individual circumstances and local median incomes.
For more detailed information on Social Security benefits and adjustments, stay tuned for updates from the SSA.