Here’s What the Average Social Security Payment Will Be This Summer
Written by
Kerra Bolton
Edited by
Rebekah Evans
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The average monthly Social Security benefit for retired workers topped $2,000 for the first time in the agency’s nine-decade history.
While Social Security remains a vital income stream for millions of Americans, inflation, cost-of-living adjustments and rising healthcare costs could erode the purchasing power for older adults who rely on Social Security alone.
Here’s what beneficiaries need to know about their payments this season to make the most out of every dollar.
Payment Update: Summer 2025
According to the latest data from the Social Security Administration, as of summer 2025, the average monthly Social Security benefit for retired workers is $2,002.39.
This marks an increase from roughly $1,917a year ago, reflecting the 2.5% cost-of-living adjustment (COLA)that took effect in January.
“While those numbers may not seem like a huge jump, every dollar counts when you’re on a fixed income,” said Oscar Skjaerpe, certified financial planner (CFP) at ProVise Management Group. “It’s a reminder that even modest COLAs can add up over time, but they still need to be part of a bigger plan.”
Keeping Up With Inflation
Cost-of-living adjustments (COLAs) are designed to help Social Security payments keep pace with inflation. While the 2025 COLA of 2.5% has kept pace with average inflation so far, retirement experts said it still falls short of covering rising expenses, such as healthcare and insurance.
“The average COLA for Social Security over the last 30 years was about 3.2%.,” said Krisstin Petersmarck, National Social Security Advisor (NSSA) and investment advisor representative at New Horizon Retirement Solutions.
Petersmarck said that while COLA is designed to help benefits keep pace with inflation, other factors, like rising Medicare Part B premiums, may strain household budgets.
“In 2025, the COLA increase was 2.5% and the average inflation rate so far is between 2.4% and 2.8%,” Petersmarck said. “So, the COLA increase based on stats has been keeping pace. However, the opinion of most people receiving Social Security benefits is that it is not keeping pace.”
Why Your Payment May Be Different
Even with the 2.5% COLA increase, factors like Medicare premiums, taxes and income brackets can reduce the actual amount retirees receive.
“The main driver of this year’s benefit increase is the 2.5% COLA,” said Jim Davis, CFP and senior wealth advisor with Aspen Wealth Management. “But rising Medicare Part B premiums and potential tax implications can quickly erode those gains.”
Most retirees have their Medicare Part B premiums automatically deducted from their monthly Social Security payments. When these premiums increase, as they often do year over year, they can offset any cost-of-living adjustment and shrink the net amount that actually lands in a retiree’s bank account.
“For high-net-worth retirees, a larger portion of Social Security benefits may be taxable and higher Medicare premiums (IRMAA surcharges) can further reduce net payments,” Davis said. “It’s a reminder that even ‘guaranteed’ income streams come with moving parts, especially for those with more complex financial pictures.”
Will It Be Enough?
While the average Social Security benefit for retired workers has risen to just over $2,000 a month in 2025, many retirees could find that it doesn’t stretch as far as expected.
“Social Security was designed to be a safety net, not a hammock. Many retirees think they can count on it as their primary income source when it’s really meant to support and not represent the majority of a broader retirement income plan,” said Shane O’Hara, CFP and certified private wealth advisor (CPWA) at ProVise Management Group.
“With inflation still higher than the Fed’s goal of 2% annually and Medicare premiums often increasing faster than the cost-of-living adjustments (COLAs), retirees should be cautious about assuming their Social Security benefit will stretch as far as it did for their parents,” O’Hara added.
Experts recommended viewing Social Security as a stable foundation, not the whole strategy.
“In the world of hiking and dressing properly to reach the mountain’s summit, you can think of Social Security like your base layer: dependable, but not the whole outfit,” O’Hara explained. “You need to layer on income from savings, investments and potentially a pension to weather the rising cost of living, unexpected expenses or even a surprise travel opportunity because retirement should include some fun too.”
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