Social Security July 2025 Increase: In July 2025, Social Security recipients across the U.S. will see slightly higher payments due to the previously announced 2.5% cost-of-living adjustment (COLA). This increase, which started in January 2025, is now reflected in July’s payments.
The COLA is determined each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a subset of inflation data produced by the Bureau of Labor Statistics (BLS). With inflation having eased over the past year, the 2.5% COLA increase for 2025 is lower than the significant increases seen in 2023 (8.7%) and 2024 (3.2%).
Details of the Social Security COLA Increase in July 2025
The 2.5% COLA increase, announced in October 2024, has been included in the federal maximum benefit amounts for 2025. The official monthly payment amounts are $1,450 for couples receiving Supplemental Security Income (SSI) and $967 for individuals. Those providing essential care for a beneficiary can receive up to $484 per month.
Since these benefits are specific and not widely available, the applications for them require substantial documentation and justification. Benefits are reduced based on income; for every $2 earned, $1 is deducted from the SSI payment. All other forms of income, including pensions, social security, and other benefits, are completely deducted. In-kind aid like food or shelter also reduces the benefit amount, which means that some recipients may receive less than the federal limit.
Impact of State Supplemental Programs
In certain states such as California, Nevada, and New Jersey, the monthly amount of federal and state payments may exceed $1,200 per individual due to state supplemental programs (SSPs). The additional amount depends on the state’s budget and local laws.
When Will the COLA Payments Arrive in July?
It’s important to clarify that there will not be a special mid-year increase in July. The 2.5% increase began with the January 2025 payments, and the July payout will reflect the same adjustment.
For a typical retiree, the average monthly SSA payment in 2024 was $1,927. After the 2.5% COLA, this increases to $1,976, with an average rise of about $49 per month. Married couples who receive benefits together will see an increase of roughly $75, raising their monthly income from $3,014 to $3,089.
This means that throughout the year, individuals will receive about $588 more, and couples will receive around $900 more than in 2024. The exact timing of the July payments depends on the beneficiary’s birthdate, with payments made according to SSA’s staggered schedule.
Social Security Payment Schedule for July 2025
Social Security payments will be made early in the month to those born on the 1st and 3rd of the month, and later in the month to others. The SSA has not made any special adjustments to the July payment schedule, and it follows the usual timeline.
Despite the seemingly small $49 increase, this COLA adjustment is critical for retirees and individuals with disabilities, as it helps maintain their purchasing power amidst rising costs of essentials such as food, housing, and healthcare.
Looking Ahead: 2026 COLA Projections
Looking forward to 2026, early estimates suggest another small COLA increase, potentially around 2.2%, based on mid-2025 inflation data. This would be the third consecutive year of smaller COLA increases following the pandemic-era adjustments.
July 2025 Social Security SSI Payments Begin
The July payment for SSI recipients is scheduled for Tuesday, July 1, 2025, in line with SSA procedures. If the payment date falls on a weekend or holiday, as it did in June, the payment will be advanced to the last business day of the previous month.
What to Do If You Don’t Receive Your Payment in July 2025
If you don’t receive your payment on July 1, 2025, contact your banking institution to verify whether the payment was processed. Sometimes delays in processing are due to issues with the bank rather than an error by the SSA.
If after three business days, the payment is still not processed, you should contact the SSA at their national phone number, 800-772-1213, or visit a local office to inquire about your payment. You will need to provide identification and your Social Security number when making inquiries.