Social Security is a cornerstone of financial security for millions of American retirees. In 2024, the average monthly benefit is $1,907—a figure that has prompted recent headlines and questions about its future. As we approach 2025, discussions about adjustments, cost-of-living increases, and long-term program sustainability are heating up. But does this mean the $1,907 Social Security check is disappearing? Not quite.

In this article, we’ll explain what’s really changing, what the Cost-of-Living Adjustment (COLA) means for your payments, and how retirees can best prepare for the road ahead.

Understanding the Social Security Benefit in 2025

The average Social Security retirement benefit in 2024 is $1,907 per month. This is a vital source of income for many retirees, especially those without large pensions or personal savings. In response to inflation, the Social Security Administration (SSA) adjusts this benefit annually through a COLA.

In 2025, the SSA will apply a 2.5% COLA, which will increase the average benefit from $1,907 to approximately $1,954 per month—an increase of $47. While helpful, this adjustment may not fully keep pace with the rising cost of essentials like food, medical care, and housing.

Why Social Security Changes Every Year

Each year, the SSA calculates COLA based on inflation trends using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The COLA ensures that benefits don’t lose purchasing power as everyday expenses increase.

For retirees, this is essential. Fixed incomes are particularly vulnerable to inflation, and even modest increases in prices can strain household budgets. COLA helps soften that impact, but it’s not a complete solution.

How Social Security Benefits Are Calculated

To understand what your future benefits might look like—or why they are what they are—it helps to know how Social Security is calculated. Three key factors influence your benefit:

1. Your 35 Highest-Earning Years

The SSA uses your highest 35 years of earnings to calculate your benefit. If you have fewer than 35 years of earnings, zero-income years are factored in, which lowers your average.

Tip: If possible, working more years at a higher wage can boost your benefit by replacing low- or zero-income years.

2. The Age You Claim Benefits

• Claiming at Full Retirement Age (FRA) (between 66 and 67 depending on your birth year) ensures you receive 100% of your benefit.

• Claiming as early as age 62 reduces your benefit by up to 30%.

• Delaying until age 70 increases your benefit by as much as 8% per year past FRA.

3. Annual COLA Adjustments

These adjustments protect the real value of your benefits and occur every January based on the prior year’s inflation data.

Supplemental Security Income (SSI) Also Adjusts

For those receiving SSI, which supports individuals with disabilities or limited resources, the 2025 COLA also brings changes:

• Individual beneficiaries will see monthly payments rise from $943 to $967

• Eligible couples will see an increase from $1,415 to $1,450

Some states offer additional supplements on top of federal SSI payments, so total benefits can vary depending on where you live.

Preparing for the Future: What Retirees Should Do Now

To make the most of your Social Security benefits—and to weather the rising cost of living—consider the following steps:

1. Stay Informed

Create a My Social Security account to access your annual benefit statements and updates. Review these regularly to ensure accuracy.

2. Budget for Inflation

Even with COLA increases, your expenses may grow faster than your benefits. Account for inflation when planning for housing, healthcare, food, and utilities.

3. Explore Supplemental Income Options

Consider ways to increase your monthly income, such as:

• Part-time work

• Rental income

• Dividend-paying investments

Retirement calculators can help you visualize how additional income might impact your overall retirement plan.

4. Delay Benefits If Possible

Delaying benefits until age 70 can significantly increase your monthly checks. If you’re still healthy and able to work, this strategy can pay off in the long term.

5. Consult a Financial Advisor

A retirement specialist can help you build a plan that combines Social Security with savings, investments, and other income sources. They’ll ensure you’re optimizing benefits while avoiding unnecessary taxes or penalties.

Addressing Common Concerns

Will Social Security Run Out of Money?

According to the SSA’s 2023 Trustees Report, the Social Security trust fund will be able to pay full benefits until 2034. After that, unless reforms are implemented, benefits may be reduced to about 80% of scheduled payments.

Several proposals are being discussed in Congress to address this issue, including:

• Raising the payroll tax cap

• Increasing the full retirement age

• Adjusting the benefit formula for higher earners

While a reduction in benefits is not imminent, retirees and future beneficiaries should keep an eye on legislative developments.

How Can I Maximize My Social Security?

To get the most out of your benefit:

• Work at least 35 years

• Delay benefits until age 70, if feasible

• Coordinate spousal and survivor benefits

• Use the SSA’s online tools to test different scenarios

Are Social Security Benefits Taxable?

Yes, depending on your income:

• If you’re single and your combined income exceeds $25,000, up to 85% of your benefits may be taxable.

• For married couples filing jointly, the threshold is $32,000.

To estimate your tax liability, consult a tax professional or use the IRS’s worksheets.

Do COLA Increases Apply to Spousal and Survivor Benefits?

Yes. Spousal, survivor, and dependent benefits all receive COLA adjustments. For example, a widow receiving survivor benefits will also see the 2.5% increase applied to her monthly check in 2025.

Final Thoughts

The Social Security benefit of $1,907 per month isn’t going away in 2025. In fact, thanks to the 2.5% COLA, it’s increasing to about $1,954 per month. However, this modest raise may not fully keep up with inflation, especially for those on fixed incomes.

That’s why staying informed, planning proactively, and exploring additional sources of income are more important than ever. While Social Security will likely remain a foundational part of retirement for years to come, it should be just one part of a broader strategy for financial stability.

Use the tools and resources available, speak to professionals if needed, and make decisions that support both your immediate needs and your long-term goals. Social Security is meant to offer support, but your future security depends on how you prepare today.