The Social Security Administration has confirmed that in 2025 some states will see larger increases compared to others. Every year the SSA adjusts Social Security payments so beneficiaries can get a boost from the cost of living adjustment (COLA).
The COLA is designed to assist seniors in maintaining their spending power even when the cost of goods and services rises, as it accounts for inflation on a variety of things.
The Senior Citizens League forecast earlier this week that the cost of living adjustment for next year could be around 2.6 percent. Since 2021, this would be the beneficiaries’ lowest increase. However, not every state experiences the same kinds of benefit increases each month.
Social Security announces some beneficiaries will receive larger checks in some states
Not every state will see monthly benefit increases at the same rate because of the way Social Security is calculated, certain retirees in certain states may receive more benefits than others. Depending on your lifetime earnings record and the date you first apply for Social Security, your actual benefit amount may change. However, it seems that not all beneficiaries will get the same average payments, as in certain states the payment amount will be higher.
Because of the way Social Security is calculated, some retirees in certain states may receive larger amounts than others. Depending on when you start claiming Social Security and your lifetime earnings, your exact benefit amount may change. According to recent research by the Motley Fool, these characteristics would result in larger Social Security benefits for some states than others.
This is because, depending on the COLA, some states have significantly higher median wages than others, resulting in larger Social Security benefits. Based on the result from the Motley Fool, here are the states with the highest median monthly Social Security checks:
- New Jersey: $2,100
- Connecticut: $2,084
- Delaware: $2,064
- New Hampshire: $2,039
- Maryland: $2,008
- Michigan: $2,005
- Washington: $1,992
- Minnesota: $1,982
- Indiana: $1,952
- Massachusetts: $1,946
Why will some beneficiaries receive larger Social Security checks in these states?
Alex Beene, a financial literacy professor at the University of Tennessee at Martin, explains that Social Security increases are higher in certain states due to higher median incomes than the national average.
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This is reflected in the benefits recipients receive, and as their monthly payments are higher, they are likely to receive the highest COLA increases. Additionally, if current COLA predictions are correct, the median retiree in New Jersey will get an additional $54.60 in Social Security benefits. In Massachusetts, the increase would be $50.60. On average, the above states had higher incomes, with New Jersey, New Hampshire, Maryland, Washington, and Massachusetts among the top ten.
However, the real story goes deeper than income to explain why these places will gain the most from the bigger cost-of-living adjustment hikes. Even among retirees with more disposable income, some choose to remain in their retirement communities.
For example, the Motley Fool notes that Washington, D.C., and California have some of the highest average Social Security benefits but the lowest incomes because retirees are moving elsewhere. Finally, it’s important to note that retirees who live outside the top 10 states can still expect a significant increase in their benefits because the cost-of-living adjustment is applied to their monthly checks regardless of where they live.
Social Security payment amounts for beneficiaries considering a 2.6% COLA in 2025
If the 2.6% COLA boost were to become effective in January 2025, these would be all the payment amounts available for beneficiaries according to the federal programs they qualify for:
| Retirement benefits (plus 2.6%) | Survivor benefits (plus 2.6%) | SSDI benefits (plus 2.6%) | SSI benefits (plus 2.6%) |
| On average: $1,949Age 62: $2,780Age 67: $3,921Age 70: $5,000 | On average: $1,544Individual: $1,8192 Children: $3,748 | On average: $1,577Blind recipients: $2,657Maximum payment: $3,921 | On average: $716Individuals: $968Couples: $1,452Essential person: $484 |