Social Security's 2025 Cost-of-Living Adjustment (COLA) Will Boost the Average Spousal Benefit -- but It Probably Won't Be a Huge Difference-Maker

Social Security's 2025 cost-of-living adjustment (COLA) came in at just 2.5% -- the lowest COLA since 2021. This is no surprise to those who have watched inflation steadily cool throughout the year. But it doesn't change the reality that many seniors will find themselves shouldering more of the financial burden in 2025.

Those who rely on spousal Social Security benefits may find things especially challenging next year. These checks are smaller than retirement benefits, to begin with, and the COLA won't change much. But understanding what you'll get next year and creating a plan can help you feel more in control.

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Here's how much the average spousal benefit will increase next year

The average spousal Social Security benefit as of August 2024 was $910 per month. This is well under the $1,920 average monthly benefit for retired workers, due to how the government calculates spousal benefits.

A spousal benefit is worth up to one-half of the qualifying worker's benefit at their full retirement age (FRA) -- between 66 and 67 for today's workers. The spouse must also claim at FRA to get this amount. If they claim early, they reduce their checks by up to 35%. As a result, the average spousal benefit is just slightly under half of the average retirement benefit.

All Social Security checks will get a 2.5% boost next year, thanks to the 2025 COLA. The way the government adds this to your checks is a bit complicated, but you can get a good approximation by adding 2.5% to your existing checks. In the case of the $910 average spousal benefit, the COLA will add about $23, bringing it to $933 per month.

You may get more than this, though. The calculation above should give you a close estimate. But you'll also get a personalized COLA notice from the Social Security Administration by mail in December. If you have a my Social Security account, you can access this through your Message Center in early December.

Preparing for 2025

It's understandable to be disappointed about the size of your 2025 COLA. A $23 average increase will give the average spousal beneficiary $276 more per year. That may not be enough to account for the increase in spending you've experienced throughout 2024.

Fortunately, many spousal beneficiaries don't have to rely upon their checks alone. If you're married, you'll also have your partner's retirement benefit. Together, those checks will go a bit further. However, it's still possible your combined Social Security may not cover all your expenses.

Once you know how much you can expect from the program next year, compare this to your estimated monthly expenses to figure out how much you must cover on your own in 2025. The ideal solution would be to rely upon your personal savings if you have them. But this isn't an option for everyone.

You may have to consider reducing expenses or looking for alternative sources of retirement income, like a part-time job or rental income, to help you make up for what your checks aren't covering. You can always adjust your approach as you go, but having some sort of plan going into 2025 can help ease your stress.

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