Social Security COLA 2025 ‘to see historic rise’ – check if your state is on the list of 10 set for biggest jump

Social Security beneficiaries are expected to get a cost-of-living adjustment (COLA) increase next year and it could be a historic increase.

The nonprofit group Senior Citizens League released its estimates for the increase that will be decided by the Social Security Administration.

COLA 2025 could see benefits increase by between 2.7% and 3.2%, according to experts, for The street.

These numbers are based on this year’s inflation data.

This is good news for retirees, as there hasn’t been a consistent COLA adjustment this large in decades.

The annual adjustment exists to protect benefits from inflation.

If the increase exceeds the 2.7% limit, it will be the fourth consecutive year of an increase equal to or greater than that level, which has not happened for 32 years.

Meanwhile, the nonprofit Senior Citizens League estimated the increase at 2.6%, the smallest percentage increase since 2021, according to The motley fool.

However, official numbers will only be released in October.

First, the Department of Labor must publish next month’s Consumer Price Index data.

This information will be released on October 10th at 8:30 am ET.

Meanwhile, 10 states will likely receive the largest amount from COLA 2025.

This is not because some states will receive more of a boost than others, but because geography has an indirect impact on average income, which in turn impacts benefits.

Social Security payments depend on beneficiaries’ lifetime income and filing age.

Those who earn less or claim before full retirement age will receive fewer Social Security benefits than those who earn more and retire on time or even late.

This will then impact the increase beneficiaries receive from the COLA, as this adjustment is calculated as a percentage of current benefit payments, which differs by retiree.

Every year, the SSA releases its annual statistical supplement that shows the demographics of retirees who receive the most monthly social security benefits.

The 2024 data reveals that New Jersey, Connecticut and Delaware were the top three states with the highest average benefits received by retirees.

This means that, on average, retirees in these states will receive the biggest COLA boost next year since they have the highest base benefit.

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