ILLINOIS — For more than 2 million people across the state, Social Security benefits are a lifeline — and every cost-of-living adjustment (COLA) matters. In 2025, beneficiaries saw a 3.2% increase in monthly checks, aimed at helping offset rising prices for essentials like groceries, rent, and utilities.
Here’s what the 2025 COLA increase means for your monthly payment, and how it compares to previous years.
2025 COLA Increase: 3.2% Across the Board
The Social Security Administration (SSA) announced a 3.2% COLA increase for 2025, based on inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This boost took effect in January 2025 and applies to:
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Retirement benefits
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Social Security Disability Insurance (SSDI)
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Supplemental Security Income (SSI)
This year’s increase is lower than the 2023 jump of 8.7%, but still higher than many pre-pandemic years.
“The 3.2% increase reflects steady inflation and ensures monthly benefits keep pace with rising living costs,” said an SSA spokesperson in the official COLA announcement.
Average Monthly Increases for Illinois Recipients
Based on SSA data, here’s how the 3.2% increase breaks down across different benefit types:
| Benefit Type | 2024 Avg. | 2025 Avg. (Post-COLA) | Monthly Increase |
|---|---|---|---|
| Retirement | $1,848 | ~$1,907 | +$59 |
| SSDI | $1,489 | ~$1,537 | +$48 |
| SSI (individual) | $914 | ~$943 | +$29 |
| SSI (couple) | $1,371 | ~$1,415 | +$44 |
Your exact increase may vary depending on your lifetime earnings, disability onset date, or other eligibility factors.
How to See Your Updated Amount
To check your new benefit amount, log in to your personal account at ssa.gov/myaccount.
Once logged in, you can:
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View your COLA notice
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Download your updated benefit verification letter
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Track deposit dates and past payments
You should also have received a mailed notice in late December 2024 outlining the new payment totals for 2025.
Impact on Illinois Households
With prices still high in Illinois — especially for food, housing, and transportation — many residents say the 3.2% increase helps but doesn’t go far enough.
“My groceries used to be under $400 a month. Now it’s $600, easy. That $50 bump helps, but it doesn’t cover the gap,” said Laverne Johnson, a retiree in South Shore.
Groups like the Illinois Alliance for Retired Americans and the AARP Illinois chapter continue to advocate for additional cost controls, including caps on prescription drug prices and better housing subsidies for fixed-income seniors.
Is the COLA Increase Taxable?
While Illinois does not tax Social Security benefits, your COLA increase may be taxed federally, depending on your income.
Generally:
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Individuals making over $25,000/year
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Couples filing jointly making over $32,000/year
…may owe taxes on a portion of their benefits. You can use IRS Form SSA-1099 to determine your taxable amount when filing in early 2026.
Does the 2025 Increase Help You Keep Up?
We want to hear how this year’s COLA increase is working for you. Are you able to cover basic costs? Are bills still outpacing your benefits? Share your story at chicagosuburbanfamily.com and help us highlight what Illinois seniors and families really need.
