Update: According to the Social Security Administration (SSA), the 2025 Cost-of-Living Adjustment (COLA) will rise 2.5%. The lower increase rate signifies that inflation is cooling in the U.S. following nearly three years of higher-than-average COLA increases.
In 2024, COLA increased 3.2%. The increase was smaller than 2022 and 2023, but is a result of lowering inflation across the U.S. That trend is reflected in the 2025 COLA rate as well.
COLA rate increases impact between 70-75 million people receiving Social Security and Supplemental Security Income benefits.
2025 COLA Payment Information
- Retired military veterans, VA disability pay recipients, and surviving family members receiving VA benefit compensation will see pay increases effective Dec. 2, 2024.
- Updated Social Security benefits will begin with December benefits, which are paid out in January of 2025.
- Updated federal Social Security Insurance (SSI) payments will start on Dec. 31, 2024.
New Medicare premium increases for 2025 will also be released soon. However, 2024 Medicare premium rates are available.
Individuals and Programs Impacted by COLA
- Retired military veterans
- Disabled veterans – See VA Disability Rate Tables
- Veterans’ pension benefits – Veterans Pension Rate Tables
- Survivor benefit annuitants – Survivors’ Pension Rate Tables
- Surviving families of veterans – Parents’ Dependency and Indemnity Compensation (DIC) Tables
- Social Security recipients
- Federal civilian retirees
- Supplemental Security Income
- Social Security Disability Insurance
- Eligibility for Medicare Extra Help and Medicaid
- Federal and state food and housing assistance programs
How COLA Is Determined
The Bureau of Labor Statistics’ Consumer Price Index (CPI-W) determines COLA increases. It is based on the percentage increase of the CPI-W from the third quarter of the previous year versus the current year’s third quarter (July, August and September).
Veterans who retire during the current calendar year will receive a temporary partial COLA because they already received a military pay raise in January.
COLA Increase History Since 1975
| Year | COLA |
|---|---|
| 2025 | 2.5% |
| 2024 | 3.20% |
| 2023 | 8.70% |
| 2022 | 5.90% |
| 2021 | 1.30% |
| 2020 | 1.60% |
| 2019 | 2.80% |
| 2018 | 2.00% |
| 2017 | 0.30% |
| 2016 | 0.00% |
| 2015 | 1.70% |
| 2014 | 1.50% |
| 2013 | 1.70% |
| 2012 | 3.60% |
| 2011 | 0.00% |
| 2010 | 0.00% |
| 2009 | 5.80% |
| 2008 | 2.30% |
| 2007 | 3.30% |
| 2006 | 4.10% |
| 2005 | 2.70% |
| 2004 | 2.10% |
| 2003 | 1.40% |
| 2002 | 2.60% |
| 2001 | 3.50% |
| 2000 | 2.50% |
| 1999 | 1.30% |
| 1998 | 2.10% |
| 1997 | 2.90% |
| 1996 | 2.60% |
| 1995 | 2.80% |
| 1994 | 2.60% |
| 1993 | 3.00% |
| 1992 | 3.70% |
| 1991 | 5.40% |
| 1990 | 4.70% |
| 1989 | 4.00% |
| 1988 | 4.20% |
| 1987 | 1.30% |
| 1986 | 3.10% |
| 1985 | 3.50% |
| 1984 | 3.50% |
| 1983 | N/A |
| 1982 | 7.40% |
| 1981 | 11.20% |
| 1980 | 14.30% |
| 1979 | 9.90% |
| 1978 | 6.50% |
| 1977 | 5.90% |
| 1976 | 6.40% |
| 1975 | 8.00% |
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Jon Rehagan covers financial topics and military news, aimed at helping those who've served our country and everyday civilians