Social Security Checks will increase in 2025
Living costs have increased in 2025, and the amount people receive will change during Social Security Checks.
Fox-10 Phoenix
New estimates show that Social Security’s cost-of-living adjustments could be 2.5% in 2026, based on the latest inflation data.
That’s up from last month’s estimate of 2.4%, says Mary Johnson, an independent Social Security and Medicare policy analyst who uses monthly inflation data to predict 2026 COLA. The 2.5% increase is the same profit as the beneficiaries received this year, but there is still time for the 2026 estimate to increase as the full impact of President Donald Trump’s tariffs is still unknown.
“This estimate could rise with four more months of data still in place before 2026 Coke is released in October,” Johnson said.
What does customs have to do with Coke?
Inflation in May remained tamed, but most economists predict that Trump’s tariffs will raise inflation, which will boost Coke.
“There is little evidence of tariffs for another month, but the long-term inflation challenges they raise remain,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management.
Ken Kim, senior economist at KPMG, believes that inflation is peaking at over 4% per year in the fall.
This is sharply higher than the annual increase in the consumer price index in May of 2.4%. This is a measure of the average change in product and service costs.
How much does a 2.5% cola increase the amount in dollars?
The monthly average social security check could reach record highs of 1,948.17. Based on that, a 2.5% increase will increase your monthly profit by about $40.70.
Approximately 75 million Americans, or about a fifth of the population, receive Social Security benefits.
What is Cola?
Coke is an annual adjustment to profits aimed at ensuring that the purchasing power of beneficiaries is not eroded by inflation. The final COLA for the following year is usually announced by the Social Security Agency in October.
How is cola calculated?
Cola is based on the rate of increase in the consumer price index for urban wage workers and administrative workers from July to September last year compared to the same three months this year. CPI-W tracks overall inflation rates, but may vary slightly.
In May, the annual CPI-W rose 2.2% compared to a 2.4% increase in overall consumer prices.
Medora Lee is a money, market and personal finance reporter for USA Today. You can contact her at mjlee@usatoday.com and subscribe to our free daily money newsletter for personal finance tips and business news every Monday to Friday morning.