Retirees that claim Social Security benefits in the United States will receive their May payments this week. Distribution is based on birthdate: those born between the 11th and 20th of any month will receive their money on Wednesday, May 21. Furthermore, the Wednesday, May 28, corresponds to beneficiaries born between the 21st and 31st. Additionally, Supplemental Security Income (SSI) recipients will receive their June payment early on Friday, May 30, since June 1st falls on a weekend.
The first group, those with birthdays between the 1st and the 10th, already received their May payment on Wednesday the 14th and will see another deposit on Wednesday the 11th, four days before the first month since their last retirement payment. Direct deposits are made into bank accounts, while checks by mail follow a similar schedule, which may be subject to logistical delays.
The significant increase in Social Security benefits
The 2025 cost-of-living adjustment (COLA) increased Social Security benefits by 2.5% to offset the effects of inflation. With this increase, the average monthly payment for single retirees rose from $1,927 to $1,976. For married couples receiving joint benefits, the amount increased from $3,014 to $3,089 per month.
Those who retired at age 70 access the maximum monthly benefit, which is now $5,108. This calculation is based on previous contributions and retirement age. The SSA uses data from the Consumer Price Index to determine the annual COLA percentage.
The 2.5% increase is lower than the 3.2% increase applied in 2024. Analysts attribute this reduction to a slowdown in inflation rates during the last quarter of 2024, according to reports from the Department of Labor.
How much will Social Security benefits increase next year?
Preliminary estimates (external to the SSA) indicate that the COLA for 2026 would be 2.4%, according to projections from the Congressional Budget Office. If confirmed, this would be the lowest increase since 2021, when it was 1.3%.
This downward trend could reduce the purchasing power of retirees, especially those without additional sources of income. Forty-five percent of Social Security beneficiaries rely on these payments for at least 90 percent of their expenses, according to 2024 data.
Organizations like AARP have pointed out that minor adjustments to the COLA do not offset the rise in medical and housing costs. However, the calculation formula has not been changed since 1983, despite recent legislative proposals.
The most widely proposed alternative method for calculating the cost-of-living adjustment (COLA) is to use the Consumer Price Index for the Elderly (CPI-E), rather than the currently used index: the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The CPI-E considers more common expenses for people over 62, as healthcare expenditures among the elderly are more common (and expensive) than for younger people. Retirees also spend more of their income on housing and food, as they tend to choose assisted living facilities such as nursing homes and also have to modify their diets to be healthier and use nutritional supplements, which can be expensive.