More than 72.79 million Americans received some form of Social Security benefit in October, where the average monthly benefit was $1,787.08. The Social Security program serves as a crucial source of income for more than 54.15 million retirees across the country. While Social Security is designed to support retirement income levels, beneficiaries increasingly rely on these checks to manage their households. The Social Security Administration has estimated that monthly Social Security checks for those 65 and older represent 30 percent of their income.

Moreover, Social Security checks represent 50% of the monthly income for 42% of women receiving benefits and 90% of income for 12% of men. Although the maximum monthly benefit for retirees claiming Social Security at full retirement age is north of $4,000 for 2025, the low monthly average could be attributed to early retirements due to financial or health challenges.

Social Security COLA for 2025 increases 2.5%, benefits vary for each recipient

Given the importance of Social Security income, it becomes essential for retirees to be aware of complex eligibility rules, annual benefit changes, and specific dates because your birthday determines when you receive your checks each month. In addition, annual cost-of-living adjustments (COLAs) are published in October each year, after taking into account inflation levels from previous quarters. For 2025, the SSA is increasing Social Security checks by 2.5 percent, which translates to a nearly $50 increase in average monthly income for all retirees. $1,976or $23,712 annually. The latest COLA, effective January 2025, is the lowest in years: 3.2% for 2024 and 8.7% for 2023.

Annual COLA increases help beneficiaries overcome inflationary pressures and preserve their purchasing power. Although inflation has been at record highs since last year, it has cooled steadily in recent quarters, moving closer to the US Federal Reserve’s 2% target, making the 2025 COLA more manageable for retirees. However, Social Security benefits will vary for retirees, depending on several factors, such as the age at which they apply, their length of service, and their earnings during their working years.

Create a Social Security account for better financial planning

Given the importance of Social Security benefits, as many rely heavily on them to support them each month, recipients can open a My social security account by November 20 to see the latest COLA notices detailing the exact amount they will receive starting next year. The free account provides valuable tools and features to resolve program related concerns or updates. It can help retirees estimate future benefits, apply for a replacement Social Security card, check application status and even manage existing benefits, all in one place.

Account holders can also change addresses, print benefit verification letters, receive Social Security statements, and request SSA-1099 tax forms through the online portal. You also have the option to receive email or text alerts for notices sent by the SSA from time to time. Many retirees prefer to receive Social Security notices offline. However, there is no need to worry; SSA will mail physical COLA notices by December. Overall, the My Social Security Account detailing all income reports and estimates can help retirees plan their budget in advance because they’ll have access to benefit details immediately after enrollment.