In the United States, each year, the Social Security payment experiences a variation based on the cost-of-living adjustment (COLA). In 2025, the COLA will significantly affect retirees who reach the delayed retirement age of 70, as those who choose to wait to get their retirement are entitled to an increase in their payments. This increase also has a direct impact on the total amount they will get, as they will benefit from a higher percentage of the COLA.
For retirees who choose to wait until age 70, this adjustment represents one of the most important ways to maximize their Social Security payments. As the 2025 COLA kicks in, Delayed Retirement Age beneficiaries will see the largest increase in their payments, allowing them to enjoy a larger amount of money during retirement. In addition, the decision to wait may have additional advantages in terms of long-term financial stability.
Adjusting for the COLA can also help mitigate the impact of inflation, which means that by getting higher payments, retirees will have a greater ability to cover their expenses in a changing economic environment. Below, we explore how this COLA will specifically affect retirees waiting until age 70 and why it is crucial to consider this option.
COLA 2025 for every retirement age
Retirees who choose to postpone retirement until age 70 will be able to enjoy the largest increase in the COLA. The exact percentage of this adjustment will be determined by the consumer price index, but what is clear is that those who expect to get their payments after age 66 will benefit from a higher payment each month.
The COLA has a crucial impact on the payments of Delayed Retirement Age retirees , as those who delay their retirement will get more money due to an accumulation of benefits. Below are the maximum annual payments for 2024 and what they are projected to look like in 2025 for these retirees.
| Payment Type | 2024 Maximum Payment | 2025 Estimated Maximum Payment |
|---|---|---|
| Full Retirement (Age 66-67) | $3,822 | $4,018 |
| Disability | $3,822 | $4,018 |
| Delayed Retirement (Age 70) | $4,873 | $5,180 |
With the 2025 COLA adjustment , this payment will be even higher, reflecting a proportional increase that helps beneficiaries cope with living costs that continue to rise over time.
This increase is significant for those who have worked for decades and have hoped to maximize their retirement benefits. The decision to wait until age 70 may be one of the best options for those who want to ensure a comfortable and sustainable retirement.
How is the Social Security Retirement check calculated?
The maximum Social Security payment depends on several factors, including years worked, salary during those years, and retirement age. The later you retire, the higher your payment will be due to the increased benefit waiting period, which also increases COLA amounts.
The process of calculating your payment involves adding your years of work, your total adjusted average earnings, and the applicable percentage for the age at which you decide to begin collecting. The highest payments are made to those who postpone retirement until age 70.
It is important to remember that each year of waiting between age 66 and 70 results in an increase in monthly payments, which allows for considerable growth in the annual amount retirees will get. This increase is one of the main benefits of the Delayed Retirement Age. The longer we take to apply for retirement the larger check we will get.
In addition, the 2025 COLA will add to those increased payments, making the combination of these factors extremely favorable for those who choose to wait.