Each year, Social Security retirees in the United States look forward to the cost-of-living adjustment, or COLA, which adjusts their payments for inflation. In 2025, this increase will be significant, but there is one group in particular that will benefit the most from this adjustment: those who retire at age 70, i.e., at the Dealyed Retirement Age. These retirees will experience a much larger increase because of the way their payments are calculated.
Social Security benefits are designed to increase if you delay retirement. When you reach age 70, your payments will be substantially higher than if you had started getting them at 62, the minimum age. In 2025, with the 2.5% COLA, this adjustment will be even more relevant for those who have waited to get their benefits.
It is important to understand how the COLA works and why retirees at age 70 are the ones who will see the greatest benefit. The COLA increase not only reflects the rising cost of living, but also adds to the higher payments that older retirees already get, further amplifying their income.
Biggest Social Security COLA in 2025
In 2025, retirees who have delayed retirement until age 70 will get the largest COLA adjustment. This is because the payments for those retiring at this age are already higher, and the proportional adjustment will be more substantial. The 2.5% COLA will apply to these higher payments, resulting in more money in their accounts each month.
For example, a retiree who gets the maximum payment of $4,873 for a late retirement in 2024 will see their check increase by approximately $300 per month in 2025, reaching a total of $5,180 per month. This amount is much larger than the adjustment those who retire at an earlier age would get.
In addition, delaying retirement also means that not only is the COLA being tapped, but the payments continue to increase until age 70. This delay translates into greater long-term financial stability, as retirees will see higher income during their retirement years.
2025 COLA and maximum checks by category
The 2025 COLA will affect retirees in all categories, but the check amounts will vary depending on each individual’s specific situation. Here are the estimated maximum checks for each category:
| Category | Maximum Payment 2025 |
|---|---|
| Full Retirement | $4,018 |
| Disability Retirement | $4,018 |
| Delayed Retirement | $5,180 |
These checks represent the highest amounts retirees can expect to get, and the 2025 COLA increase will be applied on top of these amounts, making retirees with longer waiting times enjoy a significantly larger benefit. Moreover, the Supplemental Security Income will get a raise as well reaching $967 a month.