2 moves retirees may make now to boost benefit checks

The first Social Security benefit checks for 2025 include a 2.5% increase — the lowest annual cost-of-living adjustment since 2021.

For retirees, that amounts to an increase of about $50 per month, on average, according to the Social Security Administration.

Still, amid stubborn inflation and persistent elevated costs for everyday items, some retirees may feel that the increase is not enough.

“I think overall folks are glad to see the raise,” said Jim Blair, founder at NSSA Professionals and a former Social Security administrator. “It’s not necessarily keeping up with everything, but it’s better than nothing.”

The latest government inflation data shows the measure used to calculate the annual Social Security COLA — the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W — was up 2.8% over the last 12 months as of December.

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Another measure used by the Federal Reserve to gauge long-run inflation — core inflation excluding food and energy under the personal consumption expenditures price index — was up 2.8% in December, according to data released on Friday.

For retirees who would like to see bigger Social Security benefit checks, there are a couple of strategies they may consider trying, Blair said.

Social Security beneficiaries may have up to 22% of their benefits withheld for taxes.

“If you’re struggling a little bit, particularly if you’re not in too high of a tax bracket, you can always adjust that,” Blair said.

If you’ve been getting refunds, reducing how much you have withheld will allow you to access those funds sooner, though you will get back less during next year’s tax filing season, Blair said.

But there may be a risk you may owe money at tax time next year, depending on your personal circumstances, he said.

Beneficiaries can adjust the tax withholdings on their benefits by filing Form W-4V with the Social Security Administration.

In 2025, that standard monthly premium is $185 per month.

But higher-income retirees pay more for what’s known as an income-related monthly adjustment amount, or IRMAA.

That also applies to monthly premiums for Medicare Part D prescription drug plans, which have average estimated monthly premiums of $46.50 in 2025.

The premiums are based on income tax filings from two years prior. If you’ve since had a life changing event that has prompted your income to go down — such as if you’ve retired, sold an income-producing business or survived the death of a spouse — you can apply to have your Medicare withholdings adjusted.

To do that, complete Form SSA-44 and submit it to the Social Security Administration.