Millions of Americans receiving Social Security benefits will continue to enjoy slightly higher payments in August 2025, thanks to a cost-of-living adjustment (COLA) that came into effect earlier this year. Though the increase is not as big as in previous years, it still helps cover rising living costs like groceries, rent, and healthcare. Let’s break down how much more you’re getting this month and why.
Why Are Social Security Payments Higher in August 2025?
At the start of 2025, the Social Security Administration (SSA) announced a 3.2% COLA. This adjustment was made to help monthly benefits keep pace with inflation. While it’s not as large as the 8.7% increase in 2023, it still provides extra income each month for retirees, people with disabilities, survivors, and SSI recipients.
The 3.2% increase is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of 2023. This is the standard method used every year to decide how much benefits should go up.
How Much More Money Are You Getting in August 2025?
Because of the COLA increase, the average monthly retirement benefit rose from $1,848 to about $1,907—that’s a monthly boost of around $59. This extra amount has been added to your check every month since January 2025, including the August payment.
It’s not just retirees who benefit. The increase also applies to:
People with Social Security Disability Insurance (SSDI)
Survivors receiving Social Security benefits
Supplemental Security Income (SSI) recipients
So if you receive any of these benefits, you’ve already been seeing slightly higher payments all year—and this continues in August.
Medicare Costs and Their Impact on Your Payment
One important thing to note: If you have Medicare Part B, the monthly premium rose in 2025 as well. It went up by $9.80, making the total premium $174.70. For those who have their Medicare payments deducted directly from their Social Security checks, this higher premium might reduce the amount you actually receive in hand.
So, while the COLA gives a 3.2% raise, you might see a slightly smaller net increase if Medicare costs are taken out of your check. Still, most people are getting more money overall each month than they did in 2024.
What to Expect in the Future
Experts are already keeping an eye on inflation trends to guess what the COLA might be for 2026. However, it’s too early to say exactly how much it will be. The official announcement for the 2026 COLA will come in October 2025, based on inflation data from July to September this year.
Until then, the current 3.2% boost remains in effect and will continue to provide a little financial relief for those living on fixed incomes.
Thanks to the 3.2% COLA introduced in January 2025, Social Security beneficiaries are receiving slightly higher payments each month—including in August. While Medicare premium increases may slightly reduce the net amount for some, most recipients are still seeing more money in their bank accounts. Even a small increase can make a difference for those managing rising costs. Keep an eye out for the SSA’s next update in October for any changes in 2026 benefits.
