Nearly half a million retirees and thousands of others in Mississippi are set to see increases to their Social Security benefits in the new year.
In October, the Social Security Administration announced it would increase benefits by 2.5% in 2025 as a cost of living allowance, or COLA.
On average, officials said, Social Security retirement benefits will increase by about $50 per month starting in January.
“Social Security benefits and SSI payments will increase in 2025, helping tens of millions of people keep up with expenses even as inflation has started to cool,” Commissioner of Social Security Martin O’Malley said in an October release.
Over the last decade the COLA increase has averaged about 2.6%, with a high of 8.7% in 2023. The COLA was 3.2% in 2024.
Nationally, nearly 68 million Social Security beneficiaries will receive the 2.5% adjustment. Increased payments to nearly 7.5 million people receiving SSI will begin on Dec. 31, 2024.
Below is a look at Social Security in Mississippi.
How many people in Mississippi receive Social Security?
As of December 2023, Social Security said there were 469,560 retirees drawing Social Security in Mississippi.
Another 106,000 people were receiving Social Security disability, benefits also went to 43,000 widows/widowers and parents, 14,000 spouses, and about 59,000 children.
More: The average Social Security benefit for people at age 65, 75 and more
How old do I have to be to get Social Security?
You can start receiving your Social Security retirement benefits as early as age 62. However, benefits are reduced if you begin taking them prior to “full” retirement age.
You can review how your benefits will change based on your age at SSA’s website.
Full retirement age has changed over the years and increases for people in younger age groups.
For instance, if you were born between 1943-54, full benefits began at age 66. The full-benefit age increases for those born in 1955 (66, 2 months), 1956 (66, 6 months), 1957 (66, 6 months), 1958 (66, 8 months), 1959 (66, 10 months), and 1960 and later (67).
If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.
How can I see my Social Security benefits online?
People can set up text or email alerts when there is a new message — such as their COLA notice — waiting for them in my Social Security, Social Security said.
To get started, visit www.ssa.gov/myaccount.
Will Medicare and other benefits change?
Information about Medicare changes for 2025 is available at www.medicare.gov. For Social Security beneficiaries enrolled in Medicare, the 2025 benefit amount should be available via my Social Security’s Message Center.
How does Social Security determine the COLA?
The Social Security Act provides for how the COLA is calculated.
The Social Security Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, as determined by the Department of Labor’s Bureau of Labor Statistics.
How does the 2025 COLA compare to other years?
Social Security lists annual increases dating back to 1975. Prior to that, Congress had to approve increases, which did not happen annually.
This year’s COLA is the smallest since January 2021 when it was just 1.3%.
Lowest COLAs: Zero percent in 2010, 2011 and 2016; 2017, (0.3%), 1987 (1.3%), 1999 (1.3%), 2021 (1.3%), 2022, (1.6%), 2013 (1.7%), 2015 (1.7%),
Highest COLAs: 1980 (14.3%), 1981 (11.2%), 1979 (9.9%), 2023 (8.7%), 1975 (8%), 1982 (7.4%), 1978 (6.5%), 1976 (6.4%), 1977 (5.9%), 2022 (5.9%).
Can I make money in addition to Social Security?
Yes, but if you make more than $62,160 you may have to pay taxes of earnings over that amount.
People reaching their “full” retirement age in 2025 are limited to $62,160. Social Security deducts $1 from benefits for each $3 earned over $62,160 until the month the worker turns “full” retirement age.
However, there is no limit on earnings for workers who are “full” retirement age or older for the entire year.
How much of my paycheck is taxed for help fund Social Security?
Adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax is slated to increase to $176,100 from $168,600.
Employers and employees each pay 6.2% of wages, while the self-employed pay 12.4% up to that amount.
Total income, including interest, to the combined OASI and DI Trust Funds amounted to $1.351 trillion in 2023 ($1.233 trillion from net payroll tax contributions, $51 billion from taxation of benefits, and $67 billion in interest).
Does Mississippi tax Social Security benefits?
No, Mississippi does not tax Social Security. The federal government does tax some Social Security benefits.
This article originally appeared on Mississippi Clarion Ledger: How much is Social Security increasing in Mississsippi in 2025?