COLA updates for 2025 won’t be announced until Oct. 10, but economists are predicting a 2.57% increase in Social Security benefit checks. That would be lower than the previous two years and could hit some states harder than others.
Ten states have lower average Social Security payment amounts, which means they will see the lowest increases.
Alaska, Arkansas, California, the District of Columbia, Kentucky, Louisiana, Maine, Mississippi, Montana, and New Mexico are expected to receive the smallest increase in dollars per check because the median income for these states is lower than average.
The COLA updates are a percentage of what is already being paid, so while they will receive the same percentage increase, it will total less because their payments are a lower dollar amount.
If you’re hoping to stretch your Social Security income as far as possible, then you’ll want to learn about some key changes to benefits made in 2024 that will help you understand how much you’ll receive from Social Security in 2025.