Social Security Just Released the 2025 COLA. Here's What It Means for Those Receiving Spousal Benefits.
One of the more anticipated events when it comes to Social Security is the announcement of next year's cost-of-living adjustment (COLA).
People are feeling the effects of inflation everywhere, from their groceries to household items, housing, cars, medical care, and more. That's why retirees pay extra attention to the Social Security cost-of-living adjustment (COLA). It's a way to offset some of these rising costs, though you could argue it's still not enough.
Regardless of how much the COLA makes up for inflation, most people can agree that any increase is better than no increase. The COLA for 2025 will be 2.5%. If you're currently receiving spousal benefits (or will be soon), here's how it will affect your monthly payment.
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Here's who is eligible to receive Social Security spousal benefits
The Social Security program allows those who qualify to receive monthly Social Security benefits based on their partner's work and earnings history. This is particularly beneficial for those who may have an earnings history much smaller than their partner's or who have spent much of their career as a stay-at-home parent or spouse.
To qualify for spousal benefits, the primary claiming spouse must currently be receiving benefits, and you need to be married for at least one year. In addition, one of the following must be true:
- You're at least 62 years old.
- You're caring for a child under 16.
- You're caring for a child with a disability that began before 22.
Divorced applicants could also be eligible to claim spousal benefits as long as they were married for at least 10 years.
How the 2025 COLA affects Social Security spousal benefits
If you're currently receiving Social Security spousal benefits or will be soon, the 2025 COLA will increase your spouse's benefits approximately 2.5%, in turn boosting your own benefit as well.
Someone claiming spousal benefits is eligible to receive up to 50% of the primary claiming spouse's monthly benefit. To receive 50%, however, the person claiming spousal benefits must be at their full retirement age.
Here are full retirement ages by birth year:
Assuming you claim spousal benefits at your full retirement age, here is an example of how monthly benefits would change based on the latest 2.5% COLA.
| Primary Claiming Spouse's Benefit | Spousal Benefit | Primary Claiming Spouse's Benefit with COLA | Spousal Benefit With COLA |
|---|---|---|---|
| $1,000 | $500 | $1,025 | $512.50 |
| $1,500 | $750 | $1,537.50 | $768.75 |
| $2,000 | $1,000 | $2,050 | $1,025 |
| $2,500 | $1,250 | $2,562.50 | $1,281.25 |
| $3,000 | $1,500 | $3,075 | $1,537.50 |
Table and calculations by author.
When you claim spousal benefits affects how much you get
Like standard benefits, you can claim spousal benefits beginning at age 62 -- which is before anyone's full retirement age -- but your monthly payout will shrink based on how early you claim. The penalty for claiming spousal benefits early is higher than for collecting retired workers' benefits early.
Specifically, when you claim early, your spousal benefit is reduced by 25/36 of 1% for each month left until full retirement age, up to 36 months. Every month thereafter further reduces your monthly benefit by 5/12 of 1%.
So, if your full retirement age is 67 and you claim spousal benefits as soon as you turn 62, your monthly check will be 35% lower than if you waited. If you claim at 64, it will be 25% smaller. For retired workers' benefits, however, the same circumstances would see your benefits reduced by 30% and 20% when claiming at 62 and 64, respectively.
It's also worth noting that standard benefits increase by 2/3 of 1% for each month you delay your claim past your full retirement age (until they max out at 70). Unfortunately, these delayed retirement credits don't apply to spousal benefits. If you're eligible for spousal benefits, there's no reason to wait beyond your full retirement age to claim.
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