In the changing world of retirement planning, Social Security is a key pillar for many Americans.

Looking ahead to 2025, retirees in certain states could see the biggest boosts in their Social Security checks.

At The GrayVine, we know how important it is to stay updated on these changes, so let’s explore the details and find out if you’re one of the fortunate ones expecting a big raise!

The Scoop on Social Security's 2025 COLA​

The Social Security Administration has made it official: a modest 2.5% cost-of-living adjustment (COLA) is on the horizon for 2025.

This is the smallest percentage increase since 2021, but it's still a critical update that impacts the financial well-being of retirees.


With this adjustment, the average retired worker can expect an additional $49 per month, bringing the average monthly benefit up to $1,967.

Why COLAs Matter​

COLAs are designed to maintain the purchasing power of Social Security benefits, ensuring that payouts keep pace with inflation.

This is particularly important for older Americans, who often rely on these benefits as a significant portion of their retirement income.

While all retired workers will see the same percentage increase, the actual dollar amount will vary by state due to differences in median incomes and baseline benefits.

The States with the Biggest Raises​

Now, let's get to the heart of the matter: which states will see the biggest raises?

The Social Security Administration's annual statistical supplement provides us with a snapshot of the states where retired workers already receive the highest median monthly benefits.

Consequently, these states will experience the largest nominal-dollar COLAs in 2025.

Here's the list of the top 10 states with the highest median monthly retired-worker benefit as of December 2023:


1. New Jersey
2. Connecticut
3. New Hampshire
4. Maryland
5. Washington
6. Massachusetts
7. Delaware
8. Minnesota
9. Michigan
10. Indiana

For example, retirees in New Jersey, with a median benefit of $2,100, will see a monthly increase of $52.50, while those in Massachusetts, with a median benefit of $1,946, will receive an additional $48.65 per month.

Behind the Numbers​

Why do retirees in these states have larger median benefits? The answer often lies in the median income levels.

States like New Jersey, New Hampshire, Maryland, Washington, and Massachusetts boast higher median incomes, which translate into higher Social Security benefits.

Conversely, states with lower median incomes typically see smaller Social Security checks.

It's also worth noting that retirement migration patterns can skew these numbers. Some retirees choose to relocate to states with a lower cost of living or more favorable tax laws, which can impact the median benefit figures for those states.

Maximizing Your Social Security​

Regardless of where you live, it's crucial to understand how to maximize your Social Security benefits.

Strategies such as delaying benefits until full retirement age or even age 70 can significantly increase your monthly payout.

Additionally, understanding spousal benefits, survivor benefits, and the tax implications of your Social Security income can help you make the most of what you've earned.

Remember, while the COLA for 2025 may not be as substantial as in some previous years, it represents a continued commitment to preserving the buying power of Social Security benefits.

As we embrace the future, let's stay informed, proactive, and supportive of one another in our quest for a secure and enjoyable retirement.
Are you a retiree in one of the top 10 states set for a Social Security raise? How do you plan to use the extra funds? Share your thoughts and plans in the comments below.