SOCIAL Security beneficiaries are seeing the average monthly benefit surpass $2,000 for the first time, hitting an all-time high of $2,002.
As the average payment for retired workers ticks upwards due to a range of factors, next year’s COLA will also boost the benefits of millions of Americans.
Americans are seeing the highest average monthly retirement check from Social Security[/caption]
Millions of Social Security beneficiaries will see a boost to their checks when the 2026 COLA is implemented[/caption]
After nine decades in operation, the Social Security program has made history.
Monthly checks, distributed to roughly 53 million retirees last month, averaged $2,002, a 4.5% increase from the $1,916 average in May 2024, per the SSA’s Monthly Statistical Snapshot.
The milestone is applicable only to retired Americans, who make up approximately 75% of the 69.6 million Social Security recipients.
The average monthly check across all beneficiaries was $1,858 in May.
The average payment for seniors has reached an all-time high due to a number of factors, including the 2.5% cost-of-living adjustment, or COLA, rolled out in January.
The adjustment is aimed at keeping Social Security benefits in line with inflation, although this year’s COLA was the smallest raise since 2020.
Demographic changes in the beneficiary pool also played a part in the benefits milestone, as the number of retirees receiving monthly checks shifts.
On a monthly basis, some Americans become eligible for Social Security benefits and begin receiving payments, while others pass away.
The amount of money that working Americans earn also could contribute to the hike in the average payment amount, such as if there are an increasing number of people with higher lifetime earnings or if more individuals are filing after their full retirement age.
The newly implemented Social Security Fairness Act, which hiked monthly checks for roughly three million Americans receiving pensions from work not covered by Social Security, also likely contributed to the average monthly benefit surpassing $2,000.
When the Social Security Fairness Act was signed into law by former President Joe Biden in January, it was projected that impacted individuals would see a $360 raise to their Social Security checks, on average, with others receiving up to $1,000 more each month.
BENEFIT BOOST
Cost-of-living adjustments offer annual benefit hikes based on the cost of living and inflation.
This year’s 2.5% COLA played a role in the Social Security program making history, pushing the average retirement check over $2,000 last month.
COLAs were implemented by the SSA beginning in 1975, announced each fall and rolled out the following January.
Social Security Payments May 2025
The average monthly Social Security payment last month was:
- Retired workers: $2,002
- Nondisabled widow(er)s: $1,864
- Disabled workers: $1,582
- Children of deceased workers: $1,139
- Spouses of retired workers: $950
The 2026 adjustment, to be revealed in the coming months, could be 2.5% yet again, per an estimate from the Senior Citizens League shared last Wednesday.
That projection, calculated using the latest inflation data, would mean that American retirees would receive roughly $50 more each month on average from Social Security.
The COLA is calculated based on the average inflation rate from July to September.
Because the current administration’s tariffs may increase inflation rates between these months, retired workers may see a greater COLA next year than current estimates suggest.
Despite the boost, evidence suggests that COLAs have not always matched the increase in expenses that seniors have faced over the past 25 years due to how they are calculated.
COLAs are based on the CPI-W, or Consumer Price Index for Urban Wage Earners and Clerical Workers.
This considers the spending habits of working-age Americans not currently receiving Social Security checks.
As a result, many fear that Social Security increases are not keeping pace with the rising costs of goods and services that older Americans generally purchase, like healthcare and shelter.
To make matters worse, Social Security’s “golden age” law change cuts payments by 30% – and an expert has warned don’t leave it “too late in the game.”
However, Social Security recipients can boost their payments by $1,000 – and it just takes a single move.
HOW TO SUPPLEMENT YOUR SOCIAL SECURITY
Here’s how to supplement your Social Security:
Given the uncertainty surrounding Social Security’s long-term future, it’s essential for workers to consider ways to supplement their retirement income.
Senior Citizens League executive director, Shannon Benton recommends starting early with savings and investing in retirement accounts like 401(k)s or IRAs.
- 401(k) Plans
- A 401(k) is a retirement account offered through employers, where contributions are tax-deferred.
- Many employers also match employee contributions, typically between 2% and 4% of salary, making it a valuable tool for building retirement savings.
- Maxing out your 401(k) contributions, especially if your employer offers a match, should be a priority.
- IRAs
- An Individual Retirement Account (IRA) offers another avenue for retirement savings.
- Unlike a 401(k), an IRA isn’t tied to your employer, giving you more flexibility in your investment choices.
- Contributions to traditional IRAs are tax-deductible, and the funds grow tax-free until they are withdrawn, at which point they are taxed as income.
