For millions of retirees, Social Security benefits provide essential monthly income. In 2024, the average Social Security check is $1,907, but with rising inflation and a new 2.5% Cost-of-Living Adjustment (COLA) for 2025, changes are coming.
While this update means a slight increase in benefits, many fear it won’t be enough to keep up with the cost of living.
If you rely on Social Security or are planning to retire soon, it’s important to understand how this affects your future. Here’s a complete breakdown of what the end of the $1,907 check means and how to prepare.
What Is Changing in 2025?
The Social Security Administration (SSA) adjusts monthly benefits annually through COLA to help retirees cope with inflation. In 2025, the COLA increase is set at 2.5%, which raises the average monthly retirement benefit from $1,907 to approximately $1,954.
While that may seem like good news, retirees should note that the actual purchasing power of Social Security continues to be challenged by rising costs in healthcare, housing, and basic goods.
Social Security Benefit Calculation Explained
To better plan your retirement, it helps to understand how Social Security payments are calculated:
1. Lifetime Earnings
Your benefit amount is based on your highest-earning 35 years of work. Fewer working years mean zeros are averaged in, lowering your benefit.
2. Retirement Age
- Full Retirement Age (FRA): Between 66 and 67, depending on your birth year
- Claiming Early (age 62): Reduces benefits by up to 30%
- Delaying to Age 70: Increases benefits by up to 8% per year
3. COLA Adjustments
The COLA protects against inflation by adjusting your benefit amount. The 2025 increase means an average boost of $47 per month.
2025 Monthly Social Security Payment
| Year | Average Monthly Benefit | COLA Increase | New Average Benefit |
|---|---|---|---|
| 2024 | $1,907 | 2.5% | $1,954 |
| 2025 | $1,954 | — | — |
For SSI recipients, the monthly benefit rises from $943 in 2024 to $967 in 2025 for individuals. Couples receiving SSI can expect an increase from $1,415 to $1,452.
Why COLA Matters for Retirees
COLA helps retirees preserve purchasing power, especially in an economy where inflation remains a concern.
For many, Social Security is the primary or only source of income in retirement, making these annual adjustments critical.
However, even with a COLA increase, expenses often rise faster than benefits. Healthcare premiums, utility bills, and housing costs can outpace these increases, leaving many retirees financially stretched.
How Retirees Can Prepare for These Changes
1. Stay Updated
Create or check your My Social Security account regularly to track your expected benefits and upcoming COLA updates.
2. Budget for Rising Expenses
Factor in cost increases for essentials such as food, gas, and medications. Plan for higher monthly bills, even with benefit increases.
3. Look Into Supplemental Income
Explore additional income sources:
- Part-time work
- Investments
- Rental income
Using a retirement income calculator can help assess how much more you might need.
4. Delay Your Benefits (If Possible)
Delaying your claim until age 70 can significantly increase your monthly check, offering long-term financial security.
5. Seek Professional Financial Advice
A retirement planner or financial advisor can help you optimize your Social Security strategy and budget for the future.
The $1,907 Social Security check as we know it is evolving. With the 2025 COLA increase, the average benefit will rise to $1,954, helping to offset some inflation—but likely not all. Retirees must plan accordingly, stay informed, and consider additional income streams to maintain a secure lifestyle.
By understanding how Social Security benefits are calculated and adjusting your financial plans, you can prepare confidently for the year ahead.
FAQs
Will the $1,907 Social Security check end in 2025?
Not exactly. It will increase to about $1,954 due to a 2.5% COLA, not end entirely.
Does COLA keep up with inflation?
COLA adjustments help, but often don’t fully match rising costs in housing, healthcare, and essentials.
Should I delay claiming Social Security?
If financially possible, delaying until age 70 increases your monthly benefits significantly and is worth considering.