Social Security August 2025 Boost, How Much More Will You Receive This Month?

Millions of Americans who rely on Social Security benefits will notice their monthly payments remain elevated in August 2025, thanks to a 3.2% cost-of-living adjustment (COLA) implemented earlier this year. Though smaller than the historic increases of the past two years, this COLA still helps offset rising prices in housing, food, and healthcare.

Let’s break down what this means for your wallet and what to expect in the coming months.

What Is the 2025 COLA and Why Was It Introduced?

Each year, the Social Security Administration (SSA) reviews inflation data to determine whether benefits need to increase to match the cost of living. For 2025, a 3.2% COLA was introduced based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of 2023.

While lower than the 8.7% COLA of 2023—the largest in four decades—the 2025 increase continues efforts to preserve purchasing power for retirees, the disabled, and low-income recipients in a high-inflation environment.

Your August 2025 Social Security Check: What to Expect

Because of the 3.2% COLA, the average monthly Social Security check for a retired worker increased from \$1,848 to approximately \$1,907 at the start of 2025. That increase is still reflected in August payments.

Here’s what it means for different categories of beneficiaries:

• Retired Workers: ~\$59 more per month on average
• SSI Recipients: Increases scaled to match the 3.2% COLA
• Survivor and Disability Beneficiaries: Also received proportional increases

This added income continues to provide a small but vital cushion for households living on fixed incomes.

Medicare Part B Premium Adjustments in 2025

While the COLA offers more money each month, not all recipients will feel the full benefit due to increased Medicare Part B premiums. In 2025, the standard monthly premium rose by \$9.80, bringing it to \$174.70.

If you have your Part B premium deducted directly from your Social Security check, your net benefit increase may be lower than 3.2%. However, most beneficiaries are still coming out ahead, gaining some relief despite higher healthcare costs.

COLA Effects Extend Beyond Retirement Benefits

The 3.2% COLA isn’t limited to retirees. Supplemental Security Income (SSI) recipients, survivors, and disabled individuals all saw their benefits rise in line with the adjustment.

This COLA also impacts those receiving combined Social Security and SSI benefits, helping ensure that more than 70 million Americans see increased financial support.

A Modest Increase Compared to Historic COLAs

The 2025 COLA is far less dramatic than the 8.7% jump in 2023, which responded to record inflation levels. Still, a 3.2% rise is above the average historical COLA, which typically falls around 1.5% to 2.0% annually.

This year’s adjustment reflects a moderating inflation environment, but prices for essentials remain noticeably higher than pre-pandemic levels.

How the SSA Calculates the Annual COLA

Every October, the SSA uses inflation data from July through September to set the COLA for the following year. For the 2025 increase, the third-quarter CPI-W figures from 2023 were used.

This transparent, data-driven method ensures that Social Security benefits are aligned with real-world economic trends. While the approach has limitations—it doesn’t always fully reflect senior spending patterns—it offers a consistent system to protect purchasing power.

Forecast: What About the 2026 COLA?

Although it’s too early to pin down the 2026 COLA, experts are already tracking inflation indicators. The SSA will announce the 2026 COLA in October 2025, based on inflation from Q3 2025.

If inflation remains stable or declines, next year’s increase could be smaller than 2025’s 3.2% bump. However, unexpected economic shocks could lead to a higher adjustment.

Inflation and the Real Value of Benefits

Even with yearly COLAs, Social Security benefits haven’t always kept pace with rising expenses, particularly in healthcare, rent, and energy. For many older Americans, even a modest benefit increase doesn’t go far enough.

The COLA system is designed to offer some protection, but critics argue for modernizing how inflation is measured, especially for retirees whose spending patterns differ from those of urban workers.

What Beneficiaries Can Do Now

To make the most of your 2025 Social Security increase:

• Check your benefit statement: Log in to your mySocialSecurity account or wait for your mailed summary.
• Review deductions: Understand how Medicare premiums or other withholdings affect your monthly deposit.
• Track spending: Monitor whether the increase covers higher food, energy, and housing costs.
• Prepare for October: Keep an eye on news about the 2026 COLA announcement from the SSA.

Staying informed can help you budget effectively and take full advantage of the benefits you’re entitled to.

Frequently Asked Questions (FAQs)

Q1: Why did Social Security payments increase in 2025?

A: The SSA applied a 3.2% COLA in January 2025 to help benefits keep pace with inflation. This increase continues to reflect in monthly payments through August and beyond.

Q2: How much more am I getting in August 2025?

A: The average retired worker is receiving about \$59 more per month compared to 2024, thanks to the COLA. Your exact increase depends on your benefit type and previous monthly amount.

Q3: Will Medicare premiums cancel out my COLA increase?

A: Possibly. The Medicare Part B premium increased by \$9.80 in 2025. If that amount is deducted from your Social Security check, it may reduce the net impact of the COLA.

Q4: When will I find out the 2026 COLA?

A: The SSA will announce the 2026 COLA in October 2025, after analyzing inflation data from July to September 2025.

Q5: Do SSI recipients also get the COLA?

A: Yes. SSI and SSDI beneficiaries receive the same 3.2% adjustment to their monthly benefits starting in January 2025, which remains in effect for the rest of the year.